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Full text of "Background and goals of the Federal nonnuclear research and development effort"

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9 






94th Congress \ 
2d Session J 



COMMITTEE PRINT 



BACKGROUND AND GOALS 






..." 









OF THE 

FEDERAL NONNUCLEAR RESEARCH AND 
DEVELOPMENT EFFORT 









PRINTED AT THE REQUEST OF 

Henry M. Jackson, Chairman 

COMMITTEE ON INTERIOR AND 

INSULAR AFFAIRS 

UNITED STATES SENATE 




JULY 1976 



Printed for the use of the 
Committee on Interior and Insular Affairs 



74-110 O 



U.S. GOVERNMENT PRINTING OFFICE 
WASHINGTON : 1976 



.CO ^ 



COMMITTEE ON INTERIOR AND INSULAR AFFAIRS 

HENRY M. JACKSON, Washington, Chairman 

FRANK CHURCH, Idaho PAUL J. FANNIN, Arizona 

LEE METCALF, Montana CLIFFORD P. HANSEN, Wyoming 

J. BENNETT JOHNSTON, Louisiana MARK O. HATFIELD, Oregon 

JAMES ABOUREZK, South Dakota JAMES A. McCLURE, Idaho 

FLOYD K. HASKELL, Colorado DEWEY F. BARTLETT, Oklahoma 

JOHN GLEXX. Ohio 
RICHARD STONE, Florida 
DALE BUMPERS, Arkansas 

Grenville Garside, Special Counsel and Staff Director 

Daniel A. Dreyfus, Deputy Staff Director for Legislation 

William J. Van Ness, Chief Counsel 

D. Michael Harvey, Deputy Chief Counsel 

Owen J. Malone, Senior Counsel 
W. O. (Fred) Craft, Jr., Minority Counsel 

(H) 



MEMORANDUM OF THE CHAIRMAN 



To Members of the Senate Committee on Interior and Insular Affairs : 
Beginning before the initiation of the National Fuels and Energy 
Policy Study in May of 1971, and continuing through the current 
budget authorization and oversight activities of the Subcommittee on 
Energy Research and Water Resources, this committee has been in- 
volved in a comprehensive review and redirection of the Federal role 
in nonnuclear energy research, development, and demonstration. 

Prior to the energy crisis, Federal R. & D. in the energy field, with 
the exception of the nuclear power program, was quite limited. The 
incentives of the marketplace and the efforts of the energy industries 
had provided us with energy in all of the forms necessary to serve a 
technological society with convenience and abundance. 

When for a variety of reasons the principal modern energy source, 
petroleum, became an unreliable and costly resource, however, we found 
that we were unprepared with modern alternatives. If fact, we did 
not even have the scientific, engineering and economic information to 
evaluate the dimensions of our crisis. The energy industries simply 
had not had the incentives or the responsibility to explore more diffi- 
cult and costly sources and technologies while petroleum was readily 
available and cheap. 

Between the beginning of 1973 and the present, the United States 
has embarked upon a massive, federally sponsored energy research and 
development effort. Organizationally and financially, it promises to be 
larger and more complex than was the space program. Its successes 
and failures may well dictate the shape of our future society and our 
lifestyles for the next century. 

There has been a high degree of political consensus upon the need 
for the Federal energy R. & D. effort. The Executive and the Con- 
gress have both provided concepts and support. As in any new un- 
dertaking, however, the shape of the program is still evolving. 

As the committee begins to be involved in the detail and progress of 
individual R. & D. programs and projects, it may be useful to review 
the broad goals and objectives of Congress in authorizing the effort. 
As is often the case in major policy decisions, the intent of Congress 
was often conveyed in general statements, sometimes it is implicit 
rather explicit in the language of the statutes. A clear and useful di- 
rection is evident, however, and it warrants reemphasis. 

Between January and March of 1976, the committee cooperated with 
the Principia College, Elsah, Illinois in an informal internship ar- 
rangement. Ms. Patti Kirkpatrick and Mr. Walter Downing, who arc 
undergraduate students, participating in the Washington Field Pro- 

(m) 



IV 

gram of the College, were requested to prepare a paper on the origins 
of the Federal nonnuclear R. & D. program with emphasis upon the 
goals as indicated in the legislative history. This report is the product 
of their work. 

I have ordered the report to be printed to make it available to the 
members of the committee, the Congress at large, and others who are 
interested in the origins of the Federal energy research and develop- 
ment effort. 

Hexry M. Jacksox, Chairman. 



CONTENTS 



Page 

Memorandum of the Chairman in 

I. Introduction 3 

II. The Federal Nonnuclear Research and Development Act 7 

III. The Energy Reorganization Act 13 

VI. The Mandate for the Federal Nonnuclear R. & D. Effort 19 

APPENDIXES 

I. The Energy Reorganization Act of 1974 (Public Law 93^38) 25 

II. The Federal Nonnuclear Energy Research and Development Act of 

1974 (Public Law 93-577) 49 

III. Summary of ERDA's Long-Range Plan 69 

(V) 



Digitized by the Internet Archive 
in 2013 



http://archive.org/details/backglsoOOunit 



BACKGROUND AND GOALS OF THE FEDERAL NON 
NUCLEAR RESEARCH AND DEVELOPMENT EFFORT 



Prepared by Patti Kirkpatrick and Walter Downing 
Principia College. Elsah, Illinois 

at the Request of 

Henry M. Jackson, Chairman, 

Committee on Interior and Insular Affairs, 

United States Senate, 

July 1976 



BACKGROUND AND GOALS OF THE FEDERAL NONNUCLEAR 
RESEARCH AND DEVELOPMENT EFFORT 

I. Introduction 

In the beginning of 1973, few Americans were concerned about, or 
even aware of, our failing supply of energy. By the end of the year, 
however, every American's life had been affected by it. As oil and 
gas prices shot up, thermostats in homes and offices were turned down ; 
motorists who were used to speeding along at 70 mph were driving at 
55 and the lines at gas stations were long. People speculated as to 
whether there would be enough oil to heat their homes for the winter ; 
commercial airlines sharply reduced their number of flights. To many, 
the energy crisis represented a very simple problem : the demand was 
up and the supply was limited. And while the U.S. represents only 6 
percent of the total world population, in 1972 it devoured one-third of 
the globe's energy production. 

The October 1973, oil export embargo by Arab nations finally forced 
Americans to realize that there is a desperate need to develop domestic 
energy sources, and, at the same time cut down their voracious energy 
appetite. The United States was reaching the end of its dependence 
on cheap fossil fuels reserves and there was little hope of power from 
other sources for the next 15 years. After 1985, experts argued, tech- 
nological advances would supply the nation with more than enough 
energy from nuclear powerplants. 

"Our growing demands have bumped up against the limits of avail- 
able supply," stated President Nixon on November 7, "and until we 
provide new sources of energy for tomorrow, we must be prepared to 
tighten our belts today." 

It became apparent to all that a massive research and development 
effort was necessary to deal with the Nation's fuel problems and, faced 
with the Arab oil export embargo, achieve energy self-sufficiency. 

Congress had been interested in energy research and development 
since at least 1943. Enactment of the Svnthetic Liquid Fuel Act in 
1944, established an 8-year program for the construction and operation 
of demonstration plants to produce synthetic fuels from a variety of 
energy sources in order to conserve and increase the oil resources in 
the United States. More recently, on February 4, 1971, Senator Ran- 
dolph introduced Senate Resolution 45 which authorized the Senate 
to make a study of national fuel and energv policy. Upon enactment 
and pursuant to the resolution, the Senate Committee on Interior and 
Insular Affairs conducted numerous hearings related to enenry re- 
search and development needs. During these years, a number of Senate 
resolutions and bills were introduced relating to specific and particular 
research needs, but no comprehensive energy R. & T>. program resulted. 
The energy situation, in the meantime, had reached the critical 
stage. By the summer of 1970, it was becoming increasingly apparent 
to involved policymakers that the abundant supply of low-cost energy 

(3) 



74-110 O - 76 



4 

that had served this country's development would no longer be avail- 
able. New discoveries of oil and gas reserves were not keeping pace 
with production, and consumption was outstripping supply. With 6 
percent of the world's population, the United States was consuming 
almost a third of all the energy used in the world. 

As this demand for more and more energy continued, so did the 
Nat ion's dependence on foreign oil. Oil imports in 1970 supplied 23 
percent of the national consumption and approximately 45 percent of 
the large East Coast market consumption. The experience in 1970, 
with the increased costs and reduced availability of overseas foreign 
oil brought home sharply the risks involved in a dependence on 
imports. 

This inability to meet the Nation's energy demands, however, was 
not caused by a lack of domestic energy resources. On the contrary, 
estimates at the time showed that domestic supplies of energy were 
capable of meeting all the country's requirements for the forseeable 
future. Nor did the problem stem from a lack of technology concern- 
ing the production of new energy sources. In many cases, the basic 
scientific theory and laboratory experimentation to convert the Na- 
tion's domestic fuels into usable forms of energy existed, but the 
technologies which would have made these domestic energy resources 
commercially useful within acceptable economic and environmental 
limits had not been developed. 

No coordinated strategy by which the Government and the private 
sector could bring together the talent and resources of American tech- 
nology existed, nor was there any centralized planning and policy- 
making body at the Federal level to coordinate the programs that did 
exist. Federal research and development programs in energy-related 
fields were scattered and carried out through 48 governmental agencies 
and 14 congressional committees. Congressional direction concerning 
national objectives in energy R. & D. was insufficient, and funding 
levels, historically low relative to need, reflected a lack of both focus 
and urgency. 

Faced with both a steadily widening gap between domestic demand 
and domestic supply and the need for an integrated energy policy, 
President Nixon on March 25, 1971, set the stage for things to come 
by proposing a massive restructuring of the executive branch. The 
President's proposal called for the consolidation of seven of the exist- 
ing departments — Agriculture, Interior, Commerce, Transportation, 
Labor, Housing and Urban Development, and Health, Education, and 
Welfare — into four new departments — Natural Resources, Economic 
Affairs. Community Development, and Human Resources. Those pro- 
grams affecting the environment would fall under the new Depart- 
ment of Natural Resources (DNR). A single bill was introduced in 
both Houses to set up the proposed DNR and implement the proposed 
reorganization. Hearings were held on the subject during May, June, 
and July. Although no action was ultimately taken on the bills, the 
foundation upon which future administration reorganization and re- 
h and development proposals could be built had been laid. 

The Energy Reorganization Act and the Federal Nonnuclear Energy 
and Development Act, both approved in late 1074 together 



established the organizational framework, program and policy guid- 
ance, and funding authorizations for the Nation's energy research and 
development program in nonnuclear fuel sources. 

The Energy Reorganization Act brought together in the new Energy 
Research and Development Administration (ERDA) the major 
Federal energy R. & D. programs and the responsibility for leading 
the national effort to develop the technology needed to assure the 
United States of ample and secure supplies of energy at reasonable 
prices. The Energy Reorganization Act did not set forth programmatic 
congressional policy regarding the goals or objectives of ERDA's 
programs. 

The Federal Nonnuclear Energy Research and Development Act- 
provided the parallel programmatic legislation, policy guidance, and 
funding authorizations for the Nation's nonnuclear energy research 
and the development program. The act authorized ERDA to design 
and implement the program. Nuclear research would continue to be 
guided by the Atomic Energy Act of 1954 and the Joint Committee 
on Atomic Energy. 



II. The Federal Xoxxuclear Research and Development Act 

Convinced that the need for a comprehensive energy research and 
development program was too acute to wait for massive Federal reor- 
ganization, Senator Jackson introduced S. 1283, a bill to establish 
a massive federally-sponsored national program for research, develop- 
ment, and demonstration in fuels and energy. In the words of Mr. 
Udall, referring to S. 1283 : 

It's going to take long and difficult negotiations with 
bureaucrats, committee chairmen, and constituent groups to 
work out reorganization problems. The approval of an energy 
R. & D. program and new management structure shouldn't 
be held pending that outcome. We ought to move ahead with 
S. 1283, set a temporary structure in place, and get programs 
moving. 

As introduced on March 19, 1973, S. 1283 had three main parts — 
first, a set of policy objectives enumerated in section 102 ; second, the 
establishment of an Energy Research Management Project as de- 
scribed in section 103; and, third, the creation of five separate and 
independent Government development corporations for five different 
types of energy forms as set forth in titles II- VI. The bill was the first 
legislation to describe a comprehensive energy R. & D. program for a 
number of different technologies and fuelsTAn identical bill, H.R. 
6602, was introduced in the House on April 4 by Mr. Foley. 

The policy statement of the bill declares it the policy of the Congress 
to establish and maintain a national program of research and develop- 
ment of fuels and energy adequate to : 

(a) encourage the conservation of limited energy resources 
and maximize the efficiency of energy development, production, 
conversion, and use ; 

(b) insure adequate, reliable, economical, and environmental! v 
acceptable energy systems to support the essential needs of 
modern society including the established social objectives of Fed- 
eral, State, and local government ; 

(c) discover the most attractive short-term solutions to imme- 
diate problems of the energy system . . . ; 

(d) develop the technology and information base necessarv to 
support development of the widest possible range of options 
available for future energy policy decisions . . . ; 

(e) provide within 10 years the option and the capabilitv for 
self-sufficiency for the United States . . . ; and 

(f^ establish within the Federal Government central re- 
sponsibility and institutional capability for maintaining con- 
tinuing assessment, overview, and direction of the energv research 
and development activities . . . 

(7) 



8 

To implement these objectives the bill called for a 10-year, $20- 
billion-program for energy R. & D. 

As described in section i03(f ), the Energy Management Project was 
not a reorganization of existing Federal energy functions. It was an 
interim organization established to enable the Federal Government 
to begin a comprehensive research strategy while the process of 
Government reorganization for energy was underway. S. 1283 had 
always contemplated that a permanent reorganization for the ad- 
ministration of R. & D. would be carried out. Because the Interior 
Committees of both Houses could not undertake such a reorganization, 
however, an interim interagency mechanism— the Energy Manage- 
ment Project — was established to carry out the program authorized 
by the measure until the reorganization did take place. Once a perma- 
nent lead agency for energy and energy R. & D. had been created, 
the duties and budget of the Project could be assigned to that agency. 

Titles II-VI set up not only specific guidelines for the design, im- 
plementation, and funding of the corporations, but also five specific 
technologies which were to be pursued. The scope of the measure, how- 
ever, goes beyond the demonstration stage. Titles II- VI authorize 
each corporation to "design, construct, operate, and maintain a demon- 
st ration-type facility for each method selection. . . ." If feasibility is 
demonstrated, the corporation is authorized to "design, construct, op- 
erate, and maintain, for each such method demonstrated, a full scale, 
commercialized facility" to manufacture these fuels. 

While focusing the Nation's stepped up short-term energy research 
efforts on its most abundant source of fuel — coal. S. 1283 also laid the 
groundwork for advancing energy research and development in un- 
conventional energy sources and technologies. (Section 104(b).) 

The Federal role in such an effort would be to "identify opportuni- 
ties to accelerate the commercial application of new energy technol- 
ogies by means of joint Federal-industry corporations and to submit 
plans to Congress recommending the establishment of such corpora- 
tions and the appropriate level of Federal financial participation in 
each." 

While endorsing in general the objectives of S. 1283 and concurring 
with the bill's finding that the national energy R. & I), problems could 
i ed within 10 years, the administration opposed the bill's method 
olving the Nation's energy problems. In response to Senator Jack- 
nest for view- concerning S. 1283, the Office of Management 
and Budget (OMB) wrote (he committee that the administration 
opposed the measure ''both on the basis of its organizat tonal provisions 
i> well as several of its swbsl ant ive provisions." Roy 1a Ash. Director 
of the, OMU, said the legislation "could have the effect of bringing 
private sector energy invest ment to a near stands! ill." be overly restric- 

demonstrating only certain technologies, and be wasteful by 

loping some technologies which might never prove to he tech- 
nically, economically, or environmentally acceptable. 

reported by the Senate Interior and Insular All'airs Committee 

on I tecember 1. S. L283 reflected only minor shifts of emphasis among 

iolicy object ives. The idea of providing the [Jnited States with the 

ibility and option of self-sufficiency within l<» years received 

iter attention and became the principal purpose of the hill. Con- 



9 

servation and the efficient development of energy resources were ac- 
corded renewed emphasis throughout the measure. The other objectives 
in the statement of policy, including the Energy Management Project 
concept, remained relatively unchanged. 

The five single-purpose joint Federal -industry corporations as 
originally set forth in S. 1283 were not. however, with the exception 
of the title on Geothermal Energy, included in the bill as reported. 
In what appeared to be an effort to strike a balance between too much 
and too little specificity, the committee deleted the specific authoriza- 
tions for the corporations and established a list of priorities for ex- 
penditures and set specific deadlines for a series of reports to Congress 
on R. & J), strategies in various program areas. (Section 106.) 

S. 1283 directed that a research strategy be formulated that em- 
phasized improved coal mining methods and extraction of natural 
gas and petroleum from coal during the short run- — through 1980. For 
the long run — to the year 2000 and beyond — the measure called for 
research, development, and demonstrations of the commercial feasi- 
bility of such exotic energy sources as tidal power, solar, and animal 
wastes. 

S. 1283 also authorized a wide range of Federal assistance for energy 
research, development, and demonstration projects, including con- 
tracts to build and operate federally owned facilities. Federal pur- 
chases or guarantees, Federal loans, and the creation of Government- 
industry corporations. 

The administration's own proposal, embodied in H.R. 11510. called 
for a 5-year, $10-billion program aimed at helping the United States 
become independent of foreign sources of energy. While the adminis- 
tration sharply upgraded support for nonnuclear energy research, 
nuclear energy still received the bulk of the fund.-. 

In comparing its own proposal with S. 1283, the administration 
singled out four points which they believed made their proposal the 
better of the two. First, by passing the ERDA-XEC proposal before 
establishing the complex public-private corporate structure for the 
management of energy research and development as envisioned in 
S. 1283, Congress could create the two agencies without delay and gain 
precious time for establishing legislation and administrative energy 
policies to define the Nation's energy goals. Secondly, the lead Federal 
agency, according to administration officials, should be headed by 
a single administrator, not by a commission. Thirdly, it was time to 
split up the promotional and regulatory aspects of the AEC mandate. 
Finally, there was a danger, as the administration viewed it. that the 
energy management project might become a permanent agency. 

The Environmental Subcommittee of the House Committee on In- 
terior and Insular Affairs began its hearings on the subject of energy 
research and development on May 16, 1973. with the consideration of 
H.R. 6602, but failed to approve a bill that year. A large number of 
related bills were referred to the subcommittee during the course of 
subsequent hearings, and the subcommittee began its markup on Feb- 
ruary 4, 1974. Upon conclusion of subcommittee consideration, a clean 
bill, H.R. 13565, was introduced on March 18, with the biparl 
sponsorship of 18 members of the committee. 



10 

During the subsequent period of subcommittee and full committee 
consideration of this legislation, a closely related measure, the Energy 
Reorganization Act, was being considered in the Government Opera- 
tions Committees of both Houses of Congress. Upon enactment, the 
legislation would have authorized the reorganization of energy-related 
Government agencies into a single body responsible for all energy re- 
search and development. 

Since H.R. 13505 proceeded in tandem with the latter stages of the 
ERDA-XEC proposal, the bill was constructed to blend with the 
organizational framework in the legislation. 

H.R. 13565 contained no organizational framework or administra- 
tive provisions for implementing its R. & D. program. Instead, all 
powers were delegated to an administrator as defined in section 11. 

The policy objectives of H.R. 13565 presented few differences from 
those of S. 1283 in their overall content, but some did, however, differ 
in their scope and emphasis. The policy objectives included seeking 
energy self-sufficiency, encouraging private development of energy re- 
sources, exploring the widest possible range of energy options, broad- 
ening the base of public ownership of energy industry capital, and 
assuring public access to information. 

In designing the substance of the research and development pro- 
gram, the committee did not set out a specific research program as much 
as it indicated directions in which it wanted the effort to go. The 
measure left a good deal of flexibility in its listing of specific tech- 
nologies which the committee deemed worthy of special emphasis and 
high priority and provided a set of five principles to shape the design 
and execution of the Federal program in nonnuclear energy research. 
(Section 3.) 

Federal assistance under H.R. 13565 was limited to areas where the 
private sector was unlikely to move without Federal aid because risks 
were too high, capital requirements were too large, or the potential for 
recapturing development costs was too low. (Section 3(d).) 

Reported by the House Interior Committee on June 26, the bill 
provided the program and policy guidance as well as the funding au- 
thorizations for ERDVs nonnuclear efforts, while nuclear research 
and development would continue to be guided by the Atomic Energy 
Act of 1054 and the Joint Committee on Atomic Energy. ERDA's 
Administrator would be directed to give priority to energy conserva- 
tion and a wide range of energy sources under detailed guidelines. 

The White House, on September 13, stated that H.R. 13565 as passed 
by the House was acceptable to the administration and was a "very 
necessary prelude to the creation of ERDA. ... So it's priority legisla- 
tion." This represented an apparent change in the administration's 
position. Budget Director Roy Ash had objected to the House measure 
before President Ford took office on the grounds that it was overly 
restrictive. Secretary of the Interior Rogers C. B. Morton also had 
opposed the measure, arguing that the administration already had an 
adequate energy research and development program. 

Shortly thereafter, representatives from the House and Senate met 
in conference to attempt to reach an agreement on S. L283 and H.R. 



11 

Originally, the bill (S. 1283) as approved by the Senate contained 
language specifically placing Congress on record as supporting the 
goal of attaining the capability of energy self-sufficiency within 10 
years through "a commitment similar to those undertaken in the Man- 
hattan and Apollo projects" and a research, development, and demon- 
stration program in nonnuclear fuels. Authorized to be appropriated 
for this goal was $20 billion over 10 years. The conference compromise 
dropped the reference to self-sufficiency and to the 10-year timeframe 
in which it was hoped to be achieved. As explained in the Conference 
Report (H. Kept. 93-2563) : 

Subsection 3(a) incorporates the introductory language of 
section 102 of the Senate bill with changes to reflect more 
recent views on energy policy. The Senate version of the 
measure included a statement of the policy of the Congress 
"to develop within ten years the option and the technological 
capability for the United States to become energy self-suffi- 
cient through the use of domestic energy resources by socially 
and environmentally acceptable means." The House version 
contained no comparable provision. The conference commit- 
tee wished to retain the sense of urgency expressed in the 
Senate version without prejudging the time span of the re- 
quired accelerated research, development, and demonstration 
effort. The committee also wished to emphasize that the ob- 
jective of this effort is to open up the broadest range of 
energy options for use in the formulation of future energy 
policy choices. 

The law now includes the following statement among its findings, 
reflecting the Conference Committee intent : 

The urgency of the Nation's energy challenge will require 
commitments similar to those undertaken in the Manhattan 
and Apollo projects; it will require that the Nation under- 
take a research, development, and demonstration program in 
non-nuclear energy technologies with a total Federal invest- 
ment which may reach or exceed $20,000,000,000 over the next 
decade. 

With regards to research management, the conferees adopted the 
House language which vested management of nonnuclear energy 
R. & D. in ERDA. The conferees dropped a Senate provision which 
would have created a joint Federal-industry corporation for geo- 
thermal energy demonstration. 

In deciding on a set of principles to govern the R. & D. program, 
the Conference Committee adopted modified House language for the 
principles. The principles emphasized energy conservation, the weigh- 
ing of social and environmental costs of energy development, an 
assessment of water requirements of new energy technologies, and the 
development of renewable energy resources. 

Conferees merged Senate and House provisions which required 
comprehensive plans for nonnuclear energy research and development. 
The Senate version called for a three stage program to meet energy 



74-110 O - 76 - 3 



12 

needs in the short, medium, and long term. The House measure pro- 
vided for a comprehensive strategy that focused on a long list of 
nonnuclear energy technologies. The conference agreement called for 
the ERDA Administrator to submit a plan by June 30, 1975, to 
achieve solutions to energy problems in the time periods required by 
the Senate bill and taking into account the technologies enumerated 
in the House version. 

The Senate and House provisions for Federal assistance were sim- 
ilar, except that the House version would authorize incentives for 
inventors and joint efforts by industry and universities. The more 
extensive House provisions were adopted by the conferees. 

On December 17, 1974, Congress cleared S. 1283 (P.L. 93-577) to 
establish a 10-year, $20-billion program of research and development 
in nonnuclear energy resources. The final version of the nonnuclear 
energy policy legislation leaned heavily toward the House emphasis 
on energy conservation, environmental protection, and the develop- 
ment of renewable energy sources such as solar energy. Conferees 
emphasized that S. 1283 was designed to establish within the Energy 
Research and Development Administration "a comprehensive non- 
nuclear energy research, development, and demonstration program to 
create the broadest range of future energy policy options for the 
United States." 



III. The Energy Reorganization Act 

Warning that ''unless we act swiftly and effectively Ave could face a 
genuine energy crisis in the foreseeable future. " President Nixon, 
June 29, 1973, announced a four-point program for dealing with the 
Nation's fuel problems. At this time, Xixon. by Executive order, estab- 
lished an Energy Policy Office in the Executive Office of the President. 
The Office was to be responsible for "the formulation and coordination 
of energy policies at the Presidential level," and would combine the 
duties of the Special Energy Committee and Xational Energy Office 
that had been established in April 1973. by the President. 

Xixon also asked Congress to create two other energy-related offices : 
a cabinet-level Department of Natural Resources, "responsible for the 
balanced utilization and conservation of America's energy and natural 
resources" and an Energy Research and Development Administration 
with "central responsibility for the planning, management and conduct 
of the Government's energy research and development and for working 
with industry so that promising new technologies can be developed and 
put promptly to work." 

The DENR was, as proposed, to take over the then existing activities 
of the Department of the Interior, except the Office of Coal Research 
and certain research and development programs. It would also have 
assumed duties of other Federal agencies in the energy and resource 
field: the Forest Service, the Department of Agriculture, the Army 
Corps of Engineers, the Department of Commerce, the Atomic Energy 
Commission, the Water Resources Council, and the Department of 
Transportation. 

The proposed Energy Research and Development Administration 
was to place "significant new emphasis on fossil fuels and potential new 
forms of energy, while also assuring continued progress in developing 
nuclear power." All functions of the Atomic Energy Commission, 
except licensing and regulatory responsibilities, were to be transferred 
to ERDA. 

H.R. 9090 and S. 2135. introduced June 29, 1973, and July 10, 1973, 
respectively, contained the ERDA and regulatory commission pro- 
posal, included as part of a more comprehensive package to also estab- 
lish a Department of Energy and Natural Resources. Sponsors were 
Representative Chet Holifield and Senator Henry M. Jackson. The 
objectives of the bill, as stated, were "to promote more effective man- 
agement of certain related functions of the executive branch by reor- 
ganizing and consolidating those functions in a new Department of 
Energy and Natural Resources by reorganizing and consolidating 
others in a new Energy Research and Development Administration, 
and for other purposes." 

H.R. 11510 and S. 2744 were introduced November 15 and 27. 1973, 
respectively, to propose ERDA and a nuclear regulatory commission 
separately from the other aspects of the previous bills. Sponsors were 
Representative Chet Holifield and Senator Abraham Ribicoff. 

(13) 



14 

Hearings on these bills were held by the House and Senate Govern- 
ment Operations Committees beginning on July 24. 1973, and con- 
tinuing through March 13, 1974. 

House passed H.R. 11510 on December 19, 1973. The House Govern- 
ment Operations Committee report said the bill, called the Energy 
Reorganization Act of 1973. would provide the organizational base 
for a "well-managed, centrally-directed attack on energy problems in 
order to make this Nation self-sufficient in clean energy for the decades 
ahead/' 

Senate Report 93-980 on S. 2744 was sent to the Senate June 27. 
1974. In this report the committee made clear that it did not want 
the new Energy Research and Development Administration (ERDA) 
to be overwhelmed by the massive nuclear energy research programs 
that would be transferred from the Atomic Energy Commission 
(AEC), which would be broken up and abolished. The committee also 
expressed concern about the danger of thefts of nuclear materials 
that could be made into explosives, and singled out energy conserva- 
tion and environmental protection for special attention. It was noted 
too that, in creating ERDA, energy research and development had 
lagged behind other fields such as national security, space, health and 
transportation. The Xation's increasing reliance on imported oil could 
be traced to the failure to develop alternative sources of energy. It 
said ERDA's primary goal was to develop energy technologies neces- 
sary to make the United States self-sufficient in energy by 1984. 

As reported, S. 2744 differed substantially from the version pro- 
posed by Nixon and a companion measure (H.R. 11510) which had 
passed the House December 19, 1973, particularly in its provisions 
aimed at energy conservation, nonnuclear research and nuclear safety. 

Instead of renaming the regulatory arm of the AEC the Nuclear 
Energy Commission, as proposed by Nixon, S. 2744 abolished the AEC 
and created the Nuclear Safety and Licensing Commission. 

S. 2744 also established a Council on Energy Policy, which was 
neither requested nor wanted by the administration. 

S. 2744 did not contain administration-sponsored language trans- 
ferring to ERDA from the Environmental Protection Agency (EPA) 
programs to develop a low-pollution automobile engine and tech- 
nology to control pollution from electric power and industrial plants. 
The committee said the programs were closely related to EPA's regu- 
latory programs. 

The Senate also approved 12 amendments concerning programs and 
research priorities for ERDA. requirements for reporting to Con- 
gress, public information and participation, and ERDA's operational 
procedures. 

Senator Percy introduced amendments to direct ERDA to promote 
educational programs to assure an adequate supply of manpower for 

energy research and development, and to direct the ERDA adminis- 
trator to include in his annual report a description of the agency's 
activities to promote technology on the efficient use of energy. TTis 
third amendment made it clear that the Chairman of the Nuclear 
Safety and Licensing Commission would be ERDA's chief 
administrator. 



16 

Senator Metcalf's amendments provided that exemptions to the 
Freedom of Information Act relating to nuclear safety should not 
include trade secrets unless the Nuclear Safety and Licensing Com- 
mission found that such disclosure would cause irreparable competi- 
tive injury, and directed ERDA to provide information, technical 
studies and assistance to Avitnesses for any party to a licensing or rule- 
making proceeding under the Atomic Energy Act. 

Amendments to require that ERDA's research priorities should not 
be decided on energy criteria alone but should include considerations 
of materials conservation of energy-related resources, reduction of 
pollution and potential for export, and to direct the ERDA Adminis- 
trator to submit to Congress a range of program choices and fund- 
ing levels for each of the agency's six program areas, were sponsored 
by Senator Humphrey. 

An amendment introduced by Senator Metzenbaum directed the 
ERDA Administrator to publicize information on new technologies 
for energy conservation and new energy sources as they become avail- 
able for general use. 

Senator Abourezk's amendment directed the ERDA Administra- 
tor to encourage research on and development of clean and renewable 
energy sources. 

The authority of the ERDA Administrator to use other Govern- 
ment agencies in R. & D. projects was made discretionary in an 
amendment by Senator Pastore. 

Senator Randolph sponsored an amendment directing the President 
to report to Congress on his recommendations for the appropriate 
reorganization of regulatory agencies dealing with energy issues. 

A final amendment, introduced by Senator Baker, authorized 
$1 million for a study by ERDA of potential power sites in each of 
the nine regions in the Nation. 

On August 15, 1974, the Senate passed H.R. 11510 as amended by 
the language of S. 2744. The bill passed both Houses on October 10, 
1074. and was signed into law the following day. 

As signed by President Ford, the Energy Reorganization Act of 
1974, created two new agencies: the Energy Research and Develop- 
ment Administration, (ERDA) and the Nuclear Regulatory Com- 
mission (NRC). The act abolished the Atomic Energy Commission, 
and transferred all of its licensing and regulatory functions to the 
NRC. 1 All other functions, including nuclear weapons development 
and production, were transferred to ERDA. 2 Also transferred to 
ERDA in section 104 of the act were the following programs: 

— from the Department of the Interior, all functions of the 
Office of Coal Research, all fossil fuel energy R&D programs 
of the Bureau of Mines "energy centers", and functions that 
relate to underground electric power transmission research; 

1 Transfers made from the ABC to the NRC in sections 201 (f) and (£) were: all the 
licensing and related regulatory functions of the AEC; the functions of the Atomic 
Safety and Licensing Board Panel and Appeal Board: and those personnel relating to 
reseirch for confirmatory assessment related to licensing and regulation. 

2 Special parts of the AEC transferred to ERDA include the following : the General 
Advisory Committee: the Patent Compensation Board; and the Divisions of Militarv 
Application and Naval Reactors. 



16 

— from the National Science Foundation, all functions relating 
to solar heating and cooling development, and geothermal 
power development ; and 
— from the Environmental Protection Agency, functions re- 
lating to research, development and demonstration of alterna- 
tive automotive systems — but not those functions relating to 
assessment or monitoring of automotive systems for regulatory 
purposes. 
ERDA is headed by an Administrator, appointed by the President, 
with advice and consent of the Senate. The act establishes six 
Assistant Administrators, each in charge of a specified area of re- 
sponsibility. These areas delineate the six major organizational units 
in ERDA as follows : Fossil Energy ; Nuclear Energy ; Environment 
and Safety; Energy Conservation; Solar, Geothermal. and Ad- 
vanced Energy Systems and National Security (weapons research). 
The general functions of ERDA are spelled out in section 103 of 
the act. 

In title II of the act the duties and organization of the Nuclear 
Regulatory Commission are described. Five Commissioners are to be 
selected by the President with the advice and consent of the Senate. 
The Chairman, designated by the President, will be the chief execu- 
tive and administrative officer. A Director of Regulation is to be ap- 
pointed to serve as a coordinator for the functions of the three major 
offices of the Commission. These three offices — the Office of Nuclear 
Reactor Regulation, the Office of Nuclear Materials Safety and Safe- 
guards, the Office of Xuclear Regulatory Research — are the major or- 
ganizational components of the commission. 

The directors of each office have statutory authority to deal di- 
rectly with the Commissioners. 

THE ENERGY RESOURCES COUNCIL 

Section 108 of the act established in Energy Resources Council in 
the Executive Office of the President. The Council is an interim inter- 
agency coordinating unit designed to advise the President on energy 
reorganization and to make recommendations to the President and 
Congress for measures to improve energy resources. 

The Council is to terminate upon enactment of a permament de- 
partment for energy and natural resources, or 2 years after it be- 
comes effective, whichever occurs first. If is to he composed of: 

— Secretary of the Interior 

— Administrator of the Federal Energy Administration 

— Administrator of the ERDA 

— Secretary of State 

— Director of the Office of Management and Budget 

— Such other officials of the Federal Government as the President 
shall designate 
On October \->. L974, in Executive Order No. 11814. President Ford 
designated n- Chairman the Secretary of the Interior and added these 
officers to the Council in activating it: 

— Assistant to the President for Economic Affairs 

— Secretary of the Treasury 



17 

— Secretary of Defense 

— The Attorney General 

— Secretary of Commerce 

— Secretary of Transportation 

— Chairman of the AEC (until its abolishment is effective) 

— Chairman of the Council of Economic Advisers 

— Administrator of the Environmental Protection Agency 

— Chairman of the Council of Environmental Quality 

— Director of the National Science Foundation 

— Executive Director of the Domestic Council 

REPORTS REQUIRED IN THE ACT 

Certain reports to the President or Congress are required in the 
Act: 

Section 109 requires a report by the President with the assistance of 
the Energy Resources Council on future reorganization which is 
deemed advisable for energy and related functions in the Federal 
Government. 

Section 207 outlines a nuclear energy center site survey to be con- 
ducted by the Nuclear Regulatory Commission. The Nuclear Regu- 
latory Commission is also required under section 208 to submit to 
Congress quarterly reports listing any abnormal occurrences associ- 
ated with any licensed or regulatory facility. 

Section 307 requires annual reports at the end of each fiscal year by 
both the ERDA and the NRC on their activities and plans. It also 
requires the ERDA Administrator to report on the desirability and 
feasibility of transferring to the Department of Defense or to other 
Federal agencies ERDA's national security functions. 



IV. The Mandate for the Federal Noxxuclear R. & D. Effort 

Taken together, the Federal Nonnuelear Research and Development 
Act and the Energy Reorganization Act represent the foundations of 
a massive new Federal effort for research, development and demon- 
stration of new energy technologies. 

The Energy Reorganization Act, Public Law 93-438, is primarily a 
reorganization act. It establishes the Energy Research and Develop- 
ment Administration (ERDA) and abolishes the Atomic Energy 
Commission (AEC), dividing its functions between ERDA and the 
Nuclear Regulatory Commission (NRC). The major objective of this 
legislation is the creation of a comprehensive, independent energy 
research and development agency which would play the leading Fed- 
eral role in the balanced and speedy development of various energy 
production technologies. It is also an important part of the act to sep- 
arate the research and development functions of the AEC for nuclear 
power generation from the regulatory functions of that agency. 

The responsibilities of the ERDA Administration are framed in 
general terms. The act does not set forth congressional intent concern- 
ing the conduct of energy R. & D. programs now under ERDA, nor 
does it provide guidance to the administrator on which specific tech- 
nologies should receive attention and in what order of priority. In 
establishing ERDA the act does, however, consolidate the Federal 
Government's fragmented research and development functions into a 
single new agency. ERDA brought together the major federal energy 
R. & D. programs and shouldered the responsibility for leading the na- 
tional effort in the development of the technology needed to assure 
the United States of ample and secure supplies of energy at reasonable 
prices. 

The declaration of purpose, as stated in section two of the act, notes 
that ". . . the general welfare and the common defense and security 
require effective action to develop, and increase the efficiency and relia- 
bility of use of, all energy sources to meet the needs of present and 
future generations, to increase the productivity of the national 
economy and strengthen its position in regard to international trade, 
to make the Nation self-sufficient in energy, to advance the goals of 
restoring, protecting, and enhancing environmental quality, and to 
assure public health and safety." 

The Federal Nonnuelear Energy Research and Development Act 
provided the parallel programmatic legislation, policy guidance, and 
funding authorizations for the ERDA. The act authorized ERDA to 
conduct a comprehensive, national program of basic and applied re- 
search and development capable of providing near, middle, and long- 
term supply solutions to the Nation's energy problems. In seeking 
solutions to the energy problems, ERDA would not only concern itself 
with proving the feasibility of technological options but also concern 
itself with the nontechnological aspects of the energy situation — 
transportation, resource, manpower, and capital availability; public 
acceptability; or institutional, jurisdictional, economic, and environ- 

(19) 



74-110 O - 76 



20 

mental compatibility. The act was necessary for. while detailed con- 
gressional policy and procedures concerning nuclear research had been 
spelled out or had evolved under the Atomic Energy Act, there were 
no comparable guidelines for nonnuclear energy research. 

The act dictates broad policy guidelines and governing principles 
by which ERDA's program is to be governed. It states that the policy 
of Congress is to develop on an urgent basis the technological capa- 
bility to support the broadest range of energy policy options through 
conservation and the use of domestic energy resources in socially and 
environmentally acceptable ways. Among the governing principles of 
the E. & D. program are the following: 

— Energy conservation is to be a primary consideration in the 
design and implementation of the Federal non-nuclear energy 
program. 
— The environmental and social consequences of a proposed pro- 
gram are to be analyzed and considered in evaluating its 
potential. 
— Any program for the development of a technology which may 
require significant consumptive use of water after the technol- 
ogy has reached the stage of commercial application is to include 
thorough consideration of the impacts of that technology. 
— Heavy emphasis is to be placed on those technologies which 
utilize renewable or essentially inexhaustible energy sources. 
The act further directs that the program is to (1) facilitate the com- 
mercial development of adequate energy supplies for all regions of the 
United States; (-2) consider the urgency of the public need for the 
technologies supported: (3) insure that the problems treated have 
national significance; and (4) direct Federal support to areas which 
might not attract private capital. 

In compliance with the requirements of section (> of the Xonnuclear 
Energy Research and Development Act, ERDA in June of 1975 re- 
leased a long range plan for the conduct of its program. This report 
entitled "A National Plan for Energy Research, Development and 
Demonstration" set forth five goals for the Federal energy R. X- 1). 
effort. It is interesting to compare the stated goals with the mandate 
explicitly or implicitly conveyed by the two principal enabling 
Statutes authorizing the program. 

Because the language of the statutes as well as that of the ERDA 
plan Is couched in broad terms subject to a range of definitions, com- 
parison becomes a subjective matter. The views of each of the authors 
of this report are set forth below: 

Ms, Kirkpatrick — 

In preparing its plan, ERDA proposes five goals which, taken to- 
gether, constitute the energy policy for the Nation. Although these 
goals represent a serious ana praiseworthy effort to establish a national 
energy policy, the congressional mandate for ERDA to cany out these 
objectives i- in many ways narrow and inadequate. 

The first goal is stated as follows: To maintain the security and 
policy Independence of the Nation. 

In the congressional mandate, major emphasis is given to energy 
self-sufficiency rather than international cooperation, which seriously 

Cts and distorts the meaning of policy independence. For ex- 
ample, there is no consideration of the potential impact of interna- 
tional political developments on energy policies. 



21 

The second goal : To maintain a strong and healthy economy, provid- 
ing adequate employment opportunities, and allowing the fulfillment 
of economic aspirations (especially in the less affluent parts of the 
population). 

This goal is not specifically addressed anywhere in either act. The 
goal implies a need for a vigorous socioeconomic research program to 
gain some understanding of the relationship of economic growth, 
energy and the quality of life. And yet the congressional mandate does 
not provide a vehicle for carrying out such a program. 

The third goal : To provide for future needs so that life styles remain 
a matter of choice and are not limited by the unavailability of energy. 

This goal is adequately addressed in the congressional mandate, 
where emphasis is placed not only on energy supply but energy 
demand. 

The fourth goal : To contribute to world stability through coopera- 
tive international efforts in the energy sphere. 

There is no definite attention accorded this goal in the congres- 
sional mandate. The potentiality of providing one or more new inter- 
national institutes to examine energy problems globally needs to be 
provided for. 

The fifth goal : To protect and improve the Nation's environmental 
quality by assuring that the preservation of land, water, and air re- 
sources is given high priority. 

Consistent with the goal, the two acts do attach grave importance 
to the preservation of the environment. However, a method for dealing 
with social concern and community resistance at the local level is not 
afforded sufficient attention. 

Mr. Downing — 

In establishing the five goals for the long range plan, ERDA has 
for the most part paralleled, both in scope and direction, its mandate as 
defined by the Energy Reorganization Act and the Federal Xonnu- 
clear Energy Research and Development Act. 

Whether or not the first of the five goals — to maintain the security 
and independence of the Xation — represents an accurate interpreta- 
tion of ERDA's mandate depends on which definition of the terms 
"security" and "independence" one uses. Throughout the development 
of a comprehensive national energy research and development pro- 
gram, the administration has equated the security and independence of 
the United States with the achievement of energy self-sufficiency. As 
long as this Xation had to rely on foreign sources of energy to any 
degree, she would be susceptible to threats of international blackmail 
and economic disruptions. If ERDA used this interpretation of the 
two concepts as the basis of the first goal, then the objectives of the 
two acts clearly do not coincide with the intent of the goal. If. on the 
other hand, ERDA, believed that the security and independence of the 
Xation could be maintained simply by lessening our dependence on 
foreign supplies by increasing domestic production and increasing 
the efficiency of both production and use of present sources, then the 
goal of maintaining the security and independence of the Xation has a 
basis within ERDA's mandate. 

The second of the five goals — to maintain a strong and healthy 
economy, providing adequate employment opportunities and allowing 
the fulfillment of economic aspirations (especially in the less affluent 
parts of the population) — follows the provisions of the acts to a some- 



22 

what lesser degree. The construction, operation, and maintenance of 
the demonstration facilities would indeed provide an increase in em- 
ployment opportunities and, thus, a stimulus to the economy. These 
new employment opportunities, though, would not affect the lower 
income brackets to the degree advocated by the goal. For the most part, 
they would be filled by well educated and well trained people. If these 
facilities prove that the United States can produce energy from new 
sources at competitive prices, then, at such a point when these tech- 
nologies become commercially available, the United States will not 
only have more fuel, but there will be less capital exiting the economy 
to pay for fuel imports. This money could be used for business invest- 
ments. Theoretically, with more money in people's pockets, people will 
tend to buy more, production will increase, businesses will be hiring 
more workers, and the economy will again prosper. In this respect the 
goal does have some basis in congressional intent. 

The third goal — to provide for the future needs so that life styles 
remain a matter of choice and are not limited by the unavailability of 
energy — is one of the key objectives in the national R. & D. program. 
It isn't stated specifically in either act, but the whole idea of achieving 
solutions to this country's energy problems is for this purpose. Energy 
is the sine qua non of a modern society's ability to do the things it 
wants to do. Such goals as maintaining the standard of living for a 
growing population, national security, improved quality of life, in- 
creased affluence, and increased assistance to less developed societies 
can only be attained with increasingly large amounts of energy. While 
lower energy costs allow a society more freedom of action in seeking 
its goals, the availability of energy is the first requirement of having 
any freedom of action at all. 

The fourth goal — to contribute to world stability through coopera- 
tive international efforts in the energy sphere — is asomewiiat idealistic 
but basically sound interpretation of ERDA's mandate. Section 104 
(i)) of the Energy Reorganization Act delegates the Administrator 
with the responsibility ". . . to encourage and participate in inter- 
national cooperation in energy-related environmental research and de- 
velopment." Such efforts might lead to some form of international 
resolution or an agreement under the auspices of the United Nations, 
hut with the ideological — and economic divisions of the world at pres- 
ent — the East v. the West, the oil producing v. the oil importing coun- 
tries, the developed v. the lesser developed countries — progress would 
tend to he regional and limited. 

The fifth goal — to protect and improve the Nation's environmental 
quality by assuring that the preservation of land, water, and air re- 
source's is given high priority — clearly follows the rhetoric of the acts. 
Section 5(a) of the Federal Nonnuclear Energy Research and Devel- 
opment Act clearly places primary emphasis on energy conservation 
and the development of energy sources in environmentally sound ways. 
The productive use of wastes, reuse and recycling of materials, im- 
provements iu automobile design for increased efficiency and lower 
emissions, and advanced urban and architectural design to promote 
efficient energy use are all (dements of the program's effort to achieve 
solutions to the energy problems of the \ation. The budget for the 
K. & I), program, however, fails to place equal importance on conser- 
vation. The budget authorizes only k 2 percent of the total amount 
appropriated to he used for conservation. 



APPENDIXES 



Appendix I 



Energy Reorganization Act of 1974 
(Public Law 93-438) 




25 



Public Law 93-438 

93rd Congress, H. R. 11510 

October 1 1, 1974 



an act 



To reorganize and consolidate certain functions of the Federal Government in 
a new Energy Research and Development Administration and in a new Nuclear 
Regulatory Commission in order to promote more efficient management of such 
functions. 



Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled. 

SHORT TITLE 



Energy Reorga- 
nization Aot of 
1974. 



Section 1. This Act may be cited as the "Energy Reorganization 42 use 5801 
Act of 1974". ' note. 

DECLARATION OF PURPOSE 

Sec. 2. (a) The Congress hereby declares that the general welfare 42 use 5801, 
and the common defense and security require effective action to 
develop, and increase the efficiency and reliability of use of, all energy 
sources to meet the needs of present and future generations, to increase 
the productivity of the national economy and strengthen its position in 
regard to international trade, to make the Nation self-sufficient in 
energy, to advance the goals of restoring, protecting, and enhancing 
environmental quality, and to assure public health and safety. 

(b) The Congress finds that, to best achieve these objectives, improve 
Government operations, and assure the coordinated and effective 
development of all energy sources, it is necessary to establish an 
Energy Research and Development Administration to bring together 
and direct Federal activities relating to research and development on 
the various sources of energy, to increase the efficiency and reliability 
in the use of energy, and to carry out the performance of other 
functions, including but not limited to the Atomic Energy Commis- 
sion's military and production activities and its general basic re search 



Energy Research 
and Development 
Administration, 
establishment . 



88 STAT. 1233 



activities. In establishing an Energy Research and Development 
Administration to achieve these objectives, the Congress intends that 
all possible sources of energy be developed consistent with warranted 
priorities. 

(c) The Congress finds that it is in the public interest that the 
licensing and related regulatory functions of the Atomic Energy 
Commission be separated from the performance of the other functions 
of the Commission, and that this separation be effected in an orderly 
manner, pursuant to this Act, assuring adequacy of technical and 
other resources necessary for the performance of each. 

(d) The Congress declares that it is in the public interest and the 
policy of Congress that small business concerns be given a reasonable 
opportunity to participate, insofar as is posssible. fairly and equitably 
in giants, contracts, purchases, and other Federal activities relating to 
research, development, and demonstration of sources of energy effi- 
ciency, and utilization and conservation of energy. In carrying out 
this policy, to the extent practicable, the Administrator shall consult 
with the Administrator of the Small Business Administration. 

(e) Determination of priorities which are warranted should be based 
on such considerations as power-related values of an energy source, 
preservation of material resources, reduction of pollutants, export 
market potential (including reduction of imports), among others. 
On such a basis, energy sources warranting priority might include, 
but not be limited to. the various methods of utilizing solar energy. 



88 STAT. 1234 



Separation of 
AEC licensing 
and regulatory 
functions. 



Small business 
participation. 



Priorities. 



26 



Pub. Law 93-438 



- 2 



October 1 1, 1974 



TITLE I— ENERGY RESEARCH AND DEVELOPMENT 
ADMINISTRATION 



42 USC 5811. 



Administrator, 
42 USC 5812. 



Deputy 

Administrator, 
88 STAT. 1234 



ESTABLISHMENT 

Sec. 101. There is hereby established an independent executive 
agency to be known as the Energy Research and Development 
Administration (hereinafter in this Act referred to as the ''Adminis- 
tration"). 

OFFICERS 

Sec. 102. (a) There shall be at the head of the Administration an 
Administrator of Energy Research and Development (hereinafter 
in this Act referred to as the "Administrator"), who shall be appointed 
from civilian life by the President by and with the advice and con- 
sent of the Senate. A person may not be appointed as Administrator 
within two years after release from active duty as a commissioned 
officer of a regular component of an Armed P'orce. The Administration 
shall be administered under the supervision and direction of the 
Administrator, who shall be responsible for the efficient and coordi- 
nated management of the Administration. 

(b) There shall be in the Administration a Deputy Administrator, 
who shall be appointed by the President, by and with the advice and 
consent of the Senate. 



88 STAT. 1235 



Assistant 
Administrators, 



General Counsel. 



Additional 
officers. 



Director of 

Military 

Application, 



42 USC 2011 
note. 



International 
oooperation. 



(c) The President shall appoint the Administrator and Deputy 
Administrator from among individuals who, by reason of their gen- 
eral background and experience are specially qualified to manage a 
full range of energy research and development programs. 

(d) There shall be in the Administration six Assistant Adminis- 
trators, one of whom shall be responsible for fossil energy, another 
for nuclear energy, another for environment and safety, another for 
conservation, another for solar, geothermal, and advanced energy 
systems, and another for national security. The Assistant Adminis- 
trators shall be appointed by the President, by and with the advice 
and consent of the Senate. The President shall appoint each Assistant 
Administrator from among individuals who, by reason of general 
background and experience, are specially qualified to manage the 
energy technology area assigned to such Assistant Administrator. 

(e) There shall be in the Administration a General Counsel who 
shall be appointed by the Administrator and who shall serve at the 
pleasure of and he removable by the Administrator. 

(f) There shall be in the Administration not more than eight 
additional officers appointed by the Administrator. The positions of 
such officers shall be considered career positions and be subject to 
Subsection 161 d. of the Atomic Energy Act. 

(g^Thft Division of Military Application transferred to and estab- 
lished in the Administ rat ion by section 101(d) of this Act shall be 
under' the direct ion of a Director- of Military Amplication, who shall be 
appointed by the Administrator and who shall serve at the pleasure of 
and be removable by the Administrator and shall be an active commis- 
sioned officer of the Armed Forces serving in general or flag officer rank 

or- grade. The functions, qualifications, and compensation of the 
Director- of Military Application shall be the same as those provided 
under the Atomic Energy Act of L954, as amended, for- the Assistant 
General Manager for Military Application. 

(h) Officers appointed pursuant to this section shall perform 

such functions as the Administrator- shall specify from time to time. 
The Administ rator shall delegate to one such officer t he special respon- 
sibility for international cooperation in all energy and related envi- 
ronmental research and development. 



27 



October 11, 1974 



- 3 



Pub. Law 93-438 



(i) The Deputy Administrator (or in the absence or disability of 
the Deputy Administrator, or in the event of a vacancy in the office 
of the Deputy Administrator, an Assistant Administrator, the Gen- 
eral Counsel or such other official, determined according to such order 
as the Administrator shall prescribe) shall act for and perform the 
functions of the Administrator during any absence or disability of 
the Administrator or in the event of a vacancy in the office of the 
Administrator. 



Order of 
succession, 



RESPONSIBILITIES OF THE ADMINISTRATOR 



Sec. 103. The responsibilities of the Administrator shall include, 42 use 5813. 
but not be limited to — 

(1) exercising central responsibility for policy planning, coordi- 
nation, support, and management of research and develop ment £ 



programs respecting all energy sources, including assessing the 
requirements for research and development in regard to various 
energy sources in relation to near-term and long-range needs, 
policy planning in regard to meeting those requirements, under- 
taking programs for the optimal development of the various 
forms of energy sources, managing such programs, and dissemi- 
nating information resulting therefrom ; 

(2) encouraging and conducting research and development, 
including demonstration of commercial feasibility and practical 
applications of the extraction, conversion, storage, transmission, 
and utilization phases related to the development and use of 
energy from fossil, nuclear, solar, geothermal, and other energy 
sources ; 

(3) engaging in and supporting environmental, biomedical, 
physical, and safety research related to the development of energy 
sources and utilization technologies; 

(4) taking into account the existence, progress, and results of 
other public and private research and development activities, 
including those activities of the Federal Energy Administration 
relating to the development of energy resources using currently 
available technology in promoting increased utilization of energy 
resources, relevant to the Administration's mission in formulating 
its own research and development programs ; 

(5) participating in and supporting cooperative research and 
development projects which may involve contributions by public 
or private persons or agencies, of financial or other resources to 
the performance of the work ; 

(6) developing, collecting, distributing, and making available 
for distribution, scientific and technical information concerning 
the manufacture or development of energy and its efficient extrac- 
tion, conversion, transmission, and utilization ; 

(7) creating and encouraging the development of general 
information to the public on all energy conservation technologies 
and energy sources as they become available for general use, and 
the Administrator, in conjunction with the Administrator of the 
Federal Energy Administration shall, to the extent practicable, 
disseminate such information through the use of mass communi- 
cations; 

(8) encouraging and conducting research and development in 
energy conservation, which shall be directed toward the goals of 
reducing total energy consumption to the maximum extent 
practicable, and toward maximum possible improvement in the 
efficiency of energy use. Development of new and improved con- 



88 STAT. 1236 



74-110 O - 76 - 5 



28 



STAT. 1236 



STAT. 1237 



Pub. Law 93-43 



4 - 



October 1 1. 1974 



servation measures shall be conducted with the goal of the most 
expeditious possible application of these measures; 

(9) encouraging and participating in international coopera- 
tion in energy and related environmental research and develop- 
ment : 

(10) helping to assure an adequate supply of manpower for the 
acc omplishment of energy research and development programs, 
by sponsoring and assisting in education and training activities 
in institutions of higher education, vocational schools, and other 
institutions, and by assuring the collection, analysis, and dis- 
semination of necessary manpower supply and demand data; 

I 11 ) encouraging and conducting research and development in 
clean and renew able energy sources. 



Atomic Energy 
Commission. 
42 USC 5814. 



Interior 

Department 

functions. 



Helium applica- 
tions :;• 



ABOLITION AM) TRANSFERS 

She. 104. (a) The Atomic Energy Commission is hereby abolished. 
Sections 21 and 11 of the Atomic Energv Act -of 1954, as amended (42 
U.S.C.2031 and 2032) are repealed. 

(b) All other functions of the Commission, the (/hail-man and 
members of the Commission, and the officers and components of the 
Commission are hereby transferred or allowed to lapse pursuant to 
the, provisions of this Act. 

(c) There are hereby transferred to and vested in the Adminisi rator 
all functions of the Atomic Energy Commission, the Chairman and 
members of the Commission, and the officers and components of the 
Commission, except as otherwise provided in this Act , 

(d) The General Advisory Committee established pursuant to sec- 
tion 2{> of the Atomic Energy Act of 1954, as amended (42 I'.S.C. 
2036), the Patent Compensation Board established pursuant to section 
157 of the Atomic Energy Act of 1954, as amended (48 U.S.C. 2ls7). 
and the Divisions of Military Application and Naval Reactors estab 
lished pursuant to section Ih of the Atomic Energy Act of 1954, as 
amended (42 I'.S.C. 2035), are transferred to the Energy Research 
and Development Administration and the functions of the Commis- 
sion with respect thereto, and with respect to relations with the Mili 
tary Liaison Committee established by section ll of the Atomic Energy 
Act of L954, as amended (4^1 I'.S.C. 2037)-, are transferred to the 
Administrator. 

(e) There are hereb} transferred to and vested in the Administrator 
such functions of the Secretary of the Interior, the Department of 
the Interior, and officers and components of such department 

(1) as relate to or are utilized by the Office of Coal Research 
established pursuant to the Act of July 1. L960 (71 Stat. 336; ;>t > 
I'.S.C <;<u $68) ; 

(1) as relate to or are utilized in connection with fossil fuel 
energy research and development programs and related activities 

conducted by the Bureau of Mines "energy centers" and syn- 
thane plant to provide greater efficiency in the extraction, proc- 
essing, and utilization of energy resouro&i for the purpose of 

conserving those resources, developing alternative energy 

resources, such as oil and gas secondary and tertiary recovery, oil 

shale and synthetic fuels, improving methods of managing energy - 
related wastes and pollutants, and providing technical guidance 
needed t<> establish and administer national energy policies; and 

\B relate to or are utilized for underground electric power 

t ransiiiission research. 
The Administrator shall conduct a Study of the potential energy 
applications of Indium and. within six mouths from the date of the 



29 



October 1 1, 1974 



5 - 



Pub. Law 93-43 8 



STAT. 1236 



enactment of this Act, report to the President and Congress his rec- 
ommendations concerning the management of the Federal helium 
programs, as they relate to energy. 

(f ) There are hereby transferred to and vested in the Administrator 
such functions of the National Science Foundation as relate to or are 
utilized in connection with — 

( 1 ) solar heating and cooling development ; and 

(2) geothermal power development. 

(g) There are hereby transferred to and vested in the Administrator 
such functions of the Environmental Protection Agency and the 
officers and components thereof as relate to or are utilized in con- 
nection with research, development, and demonstration, but not 
assessment or monitoring for regulatory purposes, of alternative 
automotive power systems. 

(h) To the extent necessary or appropriate to perform functions 
and carry out programs transferred by this .Vet. the Administrator 
and Commission may exercise, in relation to the functions so trans- 
ferred, any authority or part thereof available by law. including 
appropriation Acts, to the official or agency from which such func- 
tions were transferred. 

(i) In the exercise of his responsibilities under section 103, the 
Administrator shall utilize, with their consent, to the fullest extent 
he determines advisable the technical and management capabilities of 
other executive agencies having facilities, personnel, or other resources 
which can assist or advantageously be expanded to assist in carrying 
out such responsibilities. The Administrator shall consult with the 
head of each agency with respect to such facilities, personnel, or other 
resources, and may assign, with their consent, specific programs or 
projects in energy research and development as appropriate. In making 
such assignments under this subsection, the head of each such agency 
shall insure that — 

(1) such assignments shall be in addition to and not detract 
from the basic mission responsibilities of the agency, and 

(2) such assignments shall be carried out under such guidance 
as the Administrator deems appropriate. 



Report to 

President and 

Congress. 

National 

Science 

Fondation 

functions. 

Environmental 
Protection 
Agency 
functions. 



Use of other 

agencies' 

capabilities. 



ADMINISTRATIVE PROVISIONS 



Sec. 10.*). (a) The Administrator is authorized to prescribe such 
policies, standards, criteria, procedures, rules, and regulations as he 
may deem to be necessary or appropriate to perform functions now or 
hereafter vested in him. 

(b) The Administrator shall engage in such policy planning, and 
perform such program evaluation analyses and other studies, as may 
be necessary to promote the efficient and coordinated administration 
of the Administration and properly assess progress toward the achieve- 
ment of its missions. 

(c) Except as otherwise expressly provided by law, the Adminis- 
trator may delegate any of his functions to such officers and employees 
of the Administration as he may designate, and may authorize such 
successive redelegations of such functions as he may deem to be neces- 
sary or appropriate. 

(d) Except as provided in section 102 and in section 104(d), the 
Administrator may organize the Administration as he may deem to 
be necessary or appropriate. 

(e) The Administrator is authorized to establish, maintain, alter, or 
discontinue such State, regional, district, local, or other field offices as 
he may deem to be necessary or appropriate to perform functions now 
or hereafter vested in him. 



Regulations. 
42 USC 5815, 



Polioy plan- 
ning and 
evaluation. 



Delegation of 
functions. 



Organization. 



Field offices, 



30 



P, 1239 



Pub. Law 93-438 



6 - 



October 1 1, 1974 



Seal, 



Working capital 
fund. 



Information 

- ther 
agencies. 



(f) The Administrator shall cause a seal of office to be made for 
the Administration of such device as he shall approve, and judicial 
notice shall be taken of such seal. 

(g) The Administrator is authorized to establish a working capital 
fund, to be available without fiscal year limitation, for expenses neces- 
sary for the maintenance and operation of such common administrative 
services as he shall find to be desirable in the interests of economy and 
efficiency. There shall be transferred to the fund the stocks of supplies. 
equipment, assets other than real property, liabilities, and unpaid 
obligations relating to the services which he determines will be per- 
formed through the fund. Appropriations to the fund, in such amounts 
;is may be necessary to provide additional working capital, are author- 
ized. The working capital fund shall recover, from the appropriations 
and funds for which services are performed, either in advance or by 
way of reimbursement, amounts which will approximate the costs 
incurred, including the accrual of annual leave and the depreciation 
of equipment. The fund shall also be credited with receipts from the 
sale or exchange of its property, and receipts in payment for loss or 
damage to property owned by the fund. 

(h ) Each department, agency, and inst rumentality of the executive 
branch of the Government is authorized to furnish to the Adminis- 
trator, upon his request, any information or other data which the 
Administrator deems necessary to carry out his duties under this 
title. 

PERSONNEL AND SERVICES 



Appointment and 

pay. 

42 USC 5816. 



Experts and 
consultants. 
Military per- 
sonnel. 



station 
and per diem. 



Sec. 106. (a) The Administrator is authorized to select, appoint, 
employ, and fix the compensation of such officers and employees, 
including attorneys, pursuant to section 161 d. of the Atomic Energy 
Act of 1964, as amended (42 U.S.C. 2201(d) ) as are necessary to per- 
form the functions now or hereafter vested in him and to prescribe 
their functions. 

( b) The Administrator is authorized to obtain services as provided 
by section 3109 of title 5 of the United States Code. 

(cjj The Administrator is authorized to provide for participation 
of military personnel in the performance of his functions. Members 
of the Army, the Navy, the Air Force, or the Marine Corps may be 
detailed for service in the Administration by the appropriate military 
Secretary, pursuant to cooperative agreements with the Secretary, 
for service m the Administration in positions other than a position 
the occupant of which must be approved by and with the advice and 
consent of the Senate. 

(d ) Appointment, detail, or assignment to. acceptance of. and service 
iii. any appointive or other position in the Administration under this 
section -hall in no way affect the status, office, rank, or grade which 
su<h officers or enlisted men may occupy or hold, or any emolument, 
perquisite, right, privilege, or benefit incident to or arising out of 
any such status, office, rank, or grade. A member so appointed, detailed, 
or assigned Bhall not be subject to direction or control by his Armed 
Force, or any officer thereof, directly or indirectly, with rasped to 
the ie>ponsibilitics exercised in the position to which appointed, 
detailed, or assigned. 

( e ) The Administrator is authorized to pay transportation expanses, 

and pei- diem in lieu of subsistence expenses, in accordance with 
chapter 57 of title •"> of (lie United States Code for travel between 
places of recruitment and duty, and while at places of duty, of persons 

appointed for emergency, temporary, or seasonal services in the held 
service of the Administration. 



31 



October 11, 1974 



Pub. Law 93-438 



(f ) The Administrator is authorized to utilize, on a reimbursable 
basis, the services of any personnel made available by any department, 
agency, or instrumentality, including any independent agency of the 
Government. 

(g) The Administrator is authorized to establish advisory boards, 
in accordance with the provisions of the Federal Advisory Committee 
Act (Public Law 92-463), to advise with and make recommendations 
to the Administrator on legislation, policies, administration, research, 
and other matters. 

(h) The Administrator is authorized to employ persons who are not 
citizens of the United States in expert, scientific, technical, or pro- 
fessional capacities whenever he deems it in the public interest. 



88 STAT. 1240 



Personnel of 
other agencies, 



Advisory boards, 
5 USC app. I. 

Noncitizens. 



POWERS 

Sec. 107. (a) The Administrator is authorized to exercise his powers 
in such manner as to insure the continued conduct of research and 
development and related activities in areas or fields deemed by the 
Administrator to be pertinent to the acquisition of an expanded fund 
of scientific, technical, and practical knowledge in energy matters. To 
this end, the Administrator is authorized to make arrangements 
(including contracts, agreements, and loans) for the conduct of 
research and development activities with private or public institutions 
or persons, including participation in joint or cooperative projects 
of a research, developmental, or experimental nature; to make pay- 
ments (in lump sum or installments, and in advance or by way of reim- 
bursement, with necessary adjustments on account of overpayments 
or underpayments) ; and generally to take such steps as he may deem 
necessary or appropriate to perform functions now or hereafter vested 
in him. Such functions of the Administrator under this Act as are 
applicable to the nuclear activities transferred pursuant to this title 
shall be subject to the provisions of the Atomic Energy Act of 1954, 
as amended, and to other authority applicable to such nuclear activi- 
ties. The nonnuclear responsibilities and functions of the Adminis- 
trator referred to in sections 103 and 104 of this Act shall be carried 
out pursuant to the provisions of this Act, applicable authority exist- 
ing immediately before the effective date of this Act, or in accordance 
with the provisions of chapter 4 of the Atomic Energy Act of 1954, 
as amended (42 U.S.C. 2051-2053) . 

(b) Except for public buildings as denned in the Public Buildings 
Act of 1959, as amended, and with respect to leased space subject to 
the provisions of Reorganization Plan Numbered 18 of 1950, the 
Administrator is authorized to acquire (by purchase, lease, condemna- 
tion, or otherwise), construct, improve, repair, operate, and maintain 
facilities and real property as the Administrator deems to be neces- 
sary in and outside of the District of Columbia. Such authority shall 
apply only to facilities required for the maintenance and operation 
of laboratories, research and testing sites and facilities, quarters, and 
related accommodations for employees and dependents of employees 
of the Administration, and such other special-purpose real property 
as the Administrator deems to be necessary in and outside the District 
of Columbia. Title to any property or interest therein, real, personal, 
or mixed, acquired pursuant to this section, shall be in the United 
States. 

(c)(1) The Administrator is authorized to provide, construct, or 
maintain, as necessary and when not otherwise available, the follow- 
ing for employees and their dependents stationed at remote locations : 

(A) Emergency medical services and supplies. 

(B) Food and other subsistence supplies. 



Researoh and 
development. 
42 USC 5817. 



Contracts, etc. 



42 USC 2011 
note. 



Facilities and 
real property. 
40 USC 601 note. 
5 USC app. II. 



Services for 
employees at 
remote loca- 
tions. 



32 



Pub. Law 93-43! 



October 1 1, 1974 



88 STAT. 1241 



Acquisition of 
copyrights, 
patents, etc 



Dissemination of 
information. 



Gifts and 
bequests. 



Energy Rec. 
Counoil, 
establishment. 
4? USC 5618. 



(C) Messing facilities. 

(D) Audiovisual equipment, accessories, and supplies for 
recreation and training. 

(E) Reimbursement for food, clothing, medicine, and other 
supplies furnished by such employees in emergencies for the 
temporary relief of distressed persons. 

(F) Living and working quarters and facilities. 

(G) Transportation for school-age dependents of employees 
to the nearest appropriate educational facilities. 

The furnishing of medical treatment under subparagraph (A) 
of paragraph (1) and the furnishing of services and supplies under 
paragraphs (B) and (C) of paragraph (1) shall Ik 1 at prices reflecting 
reasonable value as determined by the Administrator. 

(3) Proceeds from reimbursements under this section shall be 
deposited in the Treasury and may be withdrawn by the Adminis- 
trator to pay directly the cost of such work or services, to repay or 
make advances to appropriations or funds which do or will bear all 
or a part of such cost, or to refund excess sums when necessary; except 
that such payments may be credited to a service or working capital 
fund otherwise established by law, and used under the law governing 
such funds, if the fund is available for use by the Administrator for 
performing the work or services for which payment is received. 

(d) The Administrator is authorized to acquire any of (he follow- 
ing described rights if the property acquired thereby is for use in, or 
is useful to, the performance of functions vested in him: 

(1) Copyrights, patents, and applications for patents, designs, 
processes, specifications, and data. 

(2) Licenses under copyrights, patents, and applications for 
patents. 

(3) Releases, before suit is brought, for past infringement of 
patents or copyrights. 

(e) Subject to the provisions of chapter 12 of the Atomic Energy 
Act of 11)54. as amended (42 U.S.C. 2161 2166), and other applicable 
law, the Administrator shall disseminate scientific, technical, and 
practical information acquired pursuant to this title through infor- 
mation programs and other appropriate means, and shall encourage 
the dissemination of scientific, technical, and practical information 
relating to energy so as to enlarge the fund of such information and 
to provide that free interchange of ideas and criticism which is 
essential to scientific and industrial progress and public understanding. 

(f) The Administrator is authorized to accept, hold, administer, 
and utilize gifts, and bequests of property, both real and personal, for 
the purpose of aiding or facilitating the work of the Administration. 
(iifts and bequests of money and proceeds from sales of other- prop- 
erty received as gifts or bequests shall be deposited in the Treasury 
and shall he disbursed upon the order of the Administrator. For the 
purposes of Federal income, estate, and gift taxes, property accepted 

under- this section shall be considered as a gift or bequest to the 
I lilted States. 

I vi i IMM OOORDIN mow 

106. (a) There is established in the Executive Office of the 
President an Energy Resources Council. The Council shall be com 
posed of the Secretary of the Interior, the Administrator <>!' the 
Federal Energy Administration, the Administrator of the Energy 
Research and Development Administration, the Secretar3 <>f State, 
the Director, Oilier of Management and Budget, and itich other 
officials of the Federal Government as the President may designate. 
The President shall designate one of the members oi the Council to 
Ben e as ( 'hair-man. 



33 



October 1 1, 1974 



- 9 



Pub. Law 93-43! 



88 STAT. 1242 



Testimony before 
Congress. 



Effeotive date. 
Publication in 
Federal Register. 



(b) It shall be the duty and function of the Council to — 

(1) insure communication and coordination among the agencies 
of the Federal Government which have responsibilities for the 
development and implementation of energy policy or for the 
management of energy resources ; 

(2) make recommendations to the President and to the Con- 
gress for measures to improve the implementation of Federal 
energy policies or the management of energy resources with 
particular emphasis upon policies and activities involving two 
or more Departments or independent agencies; and 

(3) advise the President in the preparation of the reorganiza- 
tion recommendations required by section 110 of this Act. 

(c) The Chairman of the Council may not refuse to testify before 
the Congress or any duly authorized committee thereof regarding 
the duties of the Council or other matters concerning interagency 
coordination of energy policy and activities. 

(d) This section shall be effective no later than sixty days after 
the enactment of this Act or such earlier date as the President shall 
prescribe and publish in the Federal Register, and shall terminate 
upon enactment of a permanent department responsible for energy 
and natural resources or two years after such effective date, which- 
ever shall occur first. 

FUTURE REORGANIZATION 

Sec. 109. (a) The President shall transmit to the Congress as Report to 
promptly as possible, but not later than June 30, 1975, such additional Congress. 
recommendations as he deems advisable for organization of energy 5819. 

and related functions in the Federal Government, including, but not 
limited to, whether or not there shall be established (1) a Department 
of Energy and Natural Resources, (2) an Energy Policy Council, 
and (3) a consolidation in whole or in part of regulatory functions 
concerning energy. 

(b) This report shall replace and serve the purposes of the report 
required by section 15(a)(4) of the Federal Energy Administration Ante, p. 109. 
Act. 

COORDINATION WITH ENVIRONMENTAL EFFORTS 

Sec. 110. The Administrator is authorized to establish programs 42 use 5820. 
to utilize research and development performed by other Federal 
agencies to minimize the adverse environmental effects of energy 
projects. The Administrator of the Environmental Protection Agency, 
as well as other affected agencies and departments, shall cooperate 
fully with the Administrator in establishing and maintaining such 
programs, and in establishing appropriate interagency agreements to 
develop cooperative programs and to avoid unnecessary duplication. 

TITLE II— NUCLEAR REGULATORY COMMISSION 



ESTABLISHMENT AND TRANSFERS 



Sec. 201. (a) There is established an independent regulatory com- Members and 
mission to be known as the Nuclear Regulatory Commission which chairman. 
shall be composed of five members, each of whom shall be a citizen 42 usc 5841 » 
of the United States. The President shall designate one member 



34 



Pub. Law 93-438 



- 10 - 



88 STAT. 1243 



October 11, 1974 



Seal. 



Submission 
of appoint- 
ments to 
Senate. 



Transfer of 
AEC functions 
and personnel, 



Additional 
transfers. 



of the Commission as Chairman thereof to serve as such during the 
pleasure of the President. The Chairman may from time to *ime 
designate any other member of the Commission as Acting Chairman 
to act in the place and stead of the Chairman during his absence. 
The Chairman (or the Acting Chairman in the absence of the Chair- 
man) shall preside at all meetings of the Commission and a quorum 
for the transaction of business shall consist of at least three membei-s 
present. Each member of the Commission, including t lie Chairman. 
shall have equal responsibility and authority in all decisions and 
actions of the Commission, shall have full access to all information 
relating to the performance of his duties or responsibilities, and shall 
have one vote. Action of the Commission shall be determined by a 
majority vote of the members present. The Chairman (or Acting Chair- 
man in the absence of the Chairman) shall l>e the official spokesman of 
the Commission in its relations with the Congress, Government 
agencies, persons, or the public, and. on behalf of the Commission, 
shall see to the faithful execution of the policies and decisions of the 
Commission, and shall report thereon to the Commission from time 
to time or as the Commission may direct. The Commission shall have 
an official seal which shall be judicially noticed. 

(b) (1) Members of the Commission shall be appointed by the Presi- 
dent, by and with the advice and consent of the Senate. 

(2) Appointments of members pursuant to this subsection shall 
be made in such a manner that not more than three members of the 
Commission shall be membei-s of the same political party. 

(c) Each member shall serve for a term of five years, each such 
term to commence on July 1, except that of the five members first 
appointed to the Commission, one shall serve for one year, one for 
t wo years, one for three years, one for four years, and one for five years, 
to be designated by the President at the time of appointment. 

(d) Such initial appointments shall be submitted to the Senate 
within sixty days of the signing of this Act. Any individual who is 
serving as a member of the Atomic Energy Commission at the time 
of the enactment of this Act, and who may be appointed by the 
President to the Commission, shall be appointed for a term designated 
by the President, but which term shall terminate not later than the 
end of his present term as a member of the Atomic Energy Commission, 
without regard to the requirements of subsection (b)(2) of this 
section. Any subsequent appointment of such individuals shall be sub- 
ject to the provisions of this section. 

(e) Any member of the Commission may be removed by the Presi- 
dent for inefficiency, neglect of duty, or malfeasance in office. No 
member of the Commission shall engage in any business, vocation, or 
employment other than that of serving as a member of the Commission. 

(f) There are hereby transferred to the Commission all the licensing 
and related regulatory functions of the Atomic Energy Commission, 
the Chairman and members of the Commission, the General Counsel, 
and other officers and components of the Commission — which func- 
tions officers, components, and personnel are excepted from the transfer 
to the A din mist rat or by sect ion 101(c) of this Act. 

(g) In addition to other functions and personnel transferred to the 

( lommission, there are also transferred to the Commission — 

(1) the functions of the Atomic Safety and Licensing Board 
Panel and the Atomic Safety and Licensing Appeal Hoard; 

(2) such personnel as the Director of the Office of Management 

and Budge! determines are necessary for exercising responsibili- 



35 



October 11, 1974 



11 



Pub.- Law 93-438 



ties under section 205, relating to, research, for the purpose of 
confirmatory assessment relating to licensing and other regula- 
tion under the provisions of the Atomic Energy Act of 1954, as 
amended, and of this Act. 



STAT. 1244 



42 USC 2011 
note. 



LICENSING AND RELATED REGULATORY FUNCTIONS RESPECTING SELECTED 
ADMINISTRATION FACILITIES 

Sec. 202. Notwithstanding the exclusions provided for in section 
110 a. or any other provisions of the Atomic Energy Act of 1954, as 
amended (42 U.S.C. 2140(a)), the Nuclear Regulatory Commission 
shall, except as otherwise specifically provided by section 110 b. of the 
Atomic Energy Act of 1954, as amended (42 U.S.C. 2140(b)), or 
other law, have licensing and related regulatory authority pursuant 
to chapters 6, 7, 8, and 10 of the Atomic Energy Act of 1954, as 
amended, as to the following facilities of the Administration: 

(1) Demonstration Liquid Metal Fast Breeder reactors when 
operated as part of the power generation facilities of an electric 
utility system, or when operated in any other manner for the pur- 
pose of demonstrating the suitability for commercial applica- 
tion of such a reactor. 

(2) Other demonstration nuclear reactors — except those in 
existence on the effective date of this Act — when operated as part 
of the power generation facilities of an electric utility system, or 
when operated in any other manner for the purpose of demon- 
strating the suitability for commercial application of such a 
reactor. 

(3) Facilities used primarily for the receipt and storage of 
high-level radioactive wastes resulting from activities licensed 
under such Act. 

(4) Retrievable Surface Storage Facilities and other facilities 
authorized for the express purpose of subsequent long-term 
storage of high-level radioactive waste generated by the Admin- 
istration, which are not used for, or are part of, research and 
development activities. 



42 USC 5842, 



42 USC 2071- 
2112, 2131- 
2140. 



OFFICE OF NUCLEAR REACTOR REGULATION 

Sec. 203. (a) There is hereby established in the Commission an 
Office of Nuclear Reactor Regulation under the direction of a Director 
of Nuclear Reactor Regulation, who shall be appointed by the Com- 
mission, who may report directly to the Commission, as provided in 
section 209, and who shall serve at the pleasure of and be removable 
by the Commission. 

(b) Subject to the provisions of this Act, the Director of Nuclear 
Reactor Regulation shall perform such functions as the Commission 
shall delegate including: 

(1) Principal licensing and regulation involving all facilities. 
and materials licensed under the Atomic Energy Act of 1954, as 
amended, associated with the construction and operation of 
nuclear reactors licensed under the Atomic Energy Act of 1954, 
as amended ; 

(2) Review the safety and safeguards of all such facilities, 
materials, and activities, and such review functions shall include, 
but not be limited to — 



Establishment, 
42 USC 5843. 

Director. 



42 USC 2011 
note. 



74-110 o - 76 



STAT. 1245 



36 



Pub. Law 93-43; 



- 12 



October 11, 1974 



(A) monitoring, testing and recommending upgrading 
of systems designed to prevent substantial health or safety 
hazards; and 

(B) evaluating methods of transporting special nuclear 
and other nuclear materials and of transporting and storing 
high-level radioactive wastes to prevent radiation hazards 
to employees and the general public. 

(3) Recommend research necessary for the discharge of the 

functions of the Commission. 

(c) Nothing in this section shall be construed to limit in any way 

the functions of the Administration relating to the safe operation of 

all facilities resulting from all activities within the jurisdiction of 

the Administration pursuant to this Act. 

OFFICE OF XI O.KAR MATERIAL SAFETY AND SAFEGUARDS 



Establishment. 
42 USC 5844. 
Director. 



Functions. 



;c 2011 

note. 



Report to 



Sec. 204. (a) There is hereby established in the Commission an 
Office of Nuclear Material Safety and Safeguards under the direction 
of a Director of Nuclear Material Safety and Safeguards, who shall 
be appointed by the Commission, who may report directly to the Com- 
mission as provided in section 209, and who shall serve at the pleasure 
of and be removable by the Commission. 

(b) Subject to the provisions of this Act, the Director of Nuclear 
Material Safety and Safeguards shall perform such functions as the 
Commission shall delegate including: 

(1) Principal licensing and regulation involving all facilities 
and materials, licensed under the Atomic Energy Act of 1954, as 
amended, associated with the processing, transport, and handling 
of nuclear materials, including the provision and maintenance 
of safeguards against threats, thefts, and sabotage of such 
licensed facilities, and materials. 

(2) Review safety and safeguards of all such facilities ami 
materials licensed under the Atomic Energy Act of 1954, as 
amended, and such review shall include, but not be limited to — 

(A ) monitoring, testing, and recommending upgrading of 
internal accounting systems for special nuclear and other 
nuclear- materials licensed under the Atomic Energy Act of 
1954, as amended; 

(H) developing, in consultation and coordination with the 
Administration, contingency plans for dealing with threats, 
thefts, and sabotage relating to special nuclear materials, 
high level radioactive wastes and nuclear facilities resulting 
from all activities licensed under the Atomic Energy Act of 
196 1. as amended ; 

| assessing the need for, and the feasibility of. Bfltab 
lishing a security agency within the office for the performance 
of the safeguards functions, and a report with recoiumenda 
tions on this matter shall be prepared within one year of 
the effective date of this Act and promptly transmitted to 
the < !ongress by t he ( commission. 
(:>) Recommending research <<> enable the Commission to 
more effectively perform its functions. 

Nothing in this section shall be construed to limit in any 

the fii net ions of the Administration relating to the safeguarding 

pecial nuclear materials, high-level radioactive wastes and nuclear 



37 



October 11, 1974 



- 13 - 



Pub. Law 93-438 



STAT. 1246 



facilities resulting from all activities within the jurisdiction of the 
Administration pursuant to this Act. 



OFFICE OF NUCLEAR REGULATORY RESEARCH 

Sec. 205. (a) There is hereby established in the Commission an 
Office of Nuclear Regulatory Research under the direction of a Director 
of Nuclear Regulatory Research, who shall be appointed by the Com- 
mission, who may report directly to the Commission as provided in 
section 209, and who shall serve at the pleasure of and be removable 
by the Commission. 

(b) Subject to the provisions of this Act, the Director of Nuclear 
Regulatory Research shall perform such functions as the Commission 
shall delegate including : 

(1) Developing recommendations for research deemed neces- 
sary for performance by the Commission of its licensing and 
related regulatory functions. 

(2) Engaging in or contracting for research which the Com- 
mission deems necessary for the performance of its licensing and 
related regulatory functions. 

(c) The Administrator of the Administration and the head of 
every other Federal agency shall — 

(1) cooperate with respect to the establishment of priorities 
for the furnishing of such research services as requested by the 
Commission for the conduct of its functions ; 

(2) furnish to the Commission, on a reimbursable basis, 
through their own facilities or by contract or other arrangement, 
such research services as the Commission deems necessary and 
requests for the performance of its functions ; and 

(3) consult and cooperate with the Commission on research 
and development matters of mutual interest and provide such 
information and physical access to its facilities as will assist 
the Commission in acquiring the expertise necessary to perform its 
licensing and related regulatory functions. 

(d) Nothing in subsections (a) and (b) of this section or section 
201 of this Act shall be construed to limit in any way the functions 
of the Administration relating to the safety of activities within the 
jurisdiction of the Administration. 

(e) Each Federal agency, subject to the provisions of existing law, 
shall cooperate with the Commission and provide such information 
and research services, on a reimbursable basis, as it may have or be 
reasonably able to acquire. 



Establishment. 
42 USC 5845. 

Direotor. 



Functions. 



Cooperation of 
Federal agencies. 



Information and 
research ser- 
vices. 



NONCOMPLIANCE 

Sec. 206. (a) Any individual director, or responsible officer of a 42 usc 5846, 
firm constructing, owning, operating, or supplying the components 
of any facility or activity which is licensed or otherwise regulated 
pursuant to the Atomic Energy Act of 1954 as amended, or pursuant to 42 usc 2011 
this Act, who obtains information reasonably indicating that such note, 
facility or activity or basic components supplied to such facility or 
activity — 

(1) fails to comply with the Atomic Energy Act of 1954, as 
amended, or any applicable rule, regulation, order, or license of 
the Commission relating to substantial safety hazards, or 

(2) contains a defect which could create a substantial safety 
hazard, as defined by regulations which the Commission shall 
promulgate, 



38 



.. 1247 



Pub. Law 93-43 



- 14 - 



Penalty, 



2282. 
Posting of 
requirements, 

2011 
note. 
Enforcement. 



October 1 1, 1974 



shall immediately notify the Commission of such failure to comply, 
or of such defect, unless such person has actual knowledge that the 
Commission lias been adequately informed of such defect or failure 
to comply. 

(b) Any person who knowingly and consciously fails to provide 
the notice required by subsection (a) of this section shall be subject 
to a civil penalty in an amount equal to the amount provided by 
section 234 of the Atomic Energy Act of 15154, as amended. 

(c) The requirements of this section shall be prominently posted 
on the premises oi any facility licensed or otherwise regulated 
pursuant to the Atomic Energy Act of 1954, as amended. 

(d) The Commission is authorized to conduct such reasonable 
inspections and other enforcement activities as needed to insure 
compliance with the provisions of this section. 



NUCLEAR ENERGY CENTER SITE SURVEY 



42 USC 5847, 



Federal-State- 
looal coopera- 
tion. 

Solicitation 
of views. 
Definition. 



and Counoil on 
.' onmental 
• . : 
availability. 



207. (a)(1) The Commission is authorized and directed to 
make or cause to be made under its direction, a national survey, which 
shall include consideration of each of the existing or future electric 
reliability regions, or other appropriate regional areas, to locate and 
identify possible nuclear energ\ center sites. This survey shall be 
conducted in cooperation with other interested Federal. State, and 
local agencies, and the views of interested persons, including electric 
utilities, citizens' groups, and others, shall be solicited and considered. 
(2) For purposes of this section, the term "nuclear energy center 
site" means any site, including a site not restricted to land, large 
enough to support utility operations or other elements of the total 
nuclear fuel cycle, or both including, if appropriate, nuclear fuel 
reprocessing facilities, nuclear fuel fabrication plants, retrievable 
nuclear waste storage facilities, and unranium enrichment facilities. 
( '■>>) The survey shall include — 

(a) a regional evaluation of natural resources, including land, 
air, and water resources, available for use in connection with 
nuclear energy center sites; estimates of future electric power 
requirements that can be served by each nuclear energy center 
site; an assessment of the economic impact of each nuclear energy 
site: and consideration of any other relevant factors, including 
hut not limited to population distribution, proximity to electric 
load centers and to other elements of the fuel cycle, transmission 
line rights-of-way. and the availability of other fuel resources; 
(I)) an evaluation of the environmental impact likely to result 
from construction and operation of such nuclear energy centers, 
including an evaluation whether such nuclear energy centers will 
result in greater or lesser environmental impact than separate 
sitUlg of the reactors and or fuel cycle faeilit ies; and 

onsiderafion of the use of federally owned property and 
other property designated for public use. bur excluding national 
parks, national forests, national wilderness areas, and national his- 
toric monuments. 

i) A report of the results of the survey -hall be published and 
transmitted to the Congress and the Council on Environmental Qual 

il\ not later than one year from the date of the enactment of this 
Act and shall be made available to the public, and shall be updated 
from tune to time thereafter as the Commission, in its discretion, 
deems advisable. The report shall include the ( 'ommissionV evaluation 
of the results of tic survey and any conclusions and recoinmendat ions. 

including recommendations for legislation, which the Comm 

mcerning the feasibility and practicality of locating 
nuclear power reactors and or ot her elements of the nuclear fuel cycle 



39 



October 11, 1974 



- 15 - 



Pub. Law 93-438 



STAT. 1248 



on nuclear energy center sites. The Commission is authorized to adopt 
policies which will encourage the location of nuclear power reactors 
and related fuel cycle facilities on nuclear energy center sites insofar 
as practicable. 

ABNORMAL OCCURRENCE REPORTS 

Sec. 208. The Commission shall submit to the Congress each quarter 
a report listing for that period any abnormal occurrences at or asso- 
ciated with any facility which is licensed or otherwise regulated pur- 
suant to the Atomic Energy Act of 1954 as amended, or pursuant to 
this Act. For the purposes of this section an abnormal occurrence is an 
unscheduled incident or event which the Commission determines is 
significant from the standpoint of public health or safety. Nothing in 
the preceding sentence shall limit the authority of a court to review 
the determination of the Commission. Each such report shall 
contain — 

( 1 ) the date and place of each occurrence ; 

(2) the nature and probable consequence of each occurrence ; 

( 3 ) the cause or causes of each ; and 

(4) any action taken to prevent reoccurrence ; 

the Commission shall also provide as wide dissemination to the public 
of the information specified in clauses (1) and (2) of this section as 
reasonably possible within fifteen days of its receiving information of 
each abnormal occurrence and shall provide as wide dissemination to 
the public as reasonably possible of the information specified in clauses 
(3) and (4) as soon as such information becomes available to it. 



Reports to 
Congress. 
42 USC 5848. 

42 USC 2011 
note. 



Public dissemi- 
nation of 
information. 



OTHER OFFICERS 

Sec. 209. (a) The Commission shall appoint an Executive Director 
for Operations, who shall serve at the pleasure of and be removable 
by the Commission. 

(b) The Executive Director shall perform such functions as the 
Commission may direct, except that the Executive Director shall not 
limit the authority of the director of any component organization pro- 
vided in this Act to communicate with or report directly to the Com- 
mission when such director of a component organization deems it 
necessary to carry out his responsibilities. 

(c) There shall be in the Commission not more than five additional 
officers appointed by the Commission. The positions of such officers 
shall be considered career positions and be subject to subsection 161 d. 
of the Atomic Energy Act. 



Executive 
Director. 
42 USC 5849. 

Functions. 



Other officers, 
42 USC 2201. 



TITLE III— MISCELLANEOUS AND TRANSITIONAL 
PROVISIONS 



TRANSITIONAL PROVISIONS 

Sec. 301. (a) Except as otherwise provided in this Act, whenever 
all of the functions or programs of an agency, or other body, or any 
component thereof, affected by this Act, have been transferred from 
that agency, or other body, or any component thereof by this Act, the 
agency, or other body, or component thereof shall lapse. If an agency, 
or other body, or any component thereof, lapses pursuant to the pre- 
ceding sentence, each position and office therein which was expressly 
authorized by law, or the incumbent of which was authorized to 
receive compensation at the rate prescribed for an office or position 
at level II, III, IV, or V of the Executive Schedule (5 U.S.C. 
5313-5316), shall lapse. 



Lapses of agen- 
cies and posi- 
tions. 
42 USC 5871. 



40 



88 STAT. 1249 



Pub. Law 93-438 



16 



October 11, 1974 



Savings clauses. (b) All orders, determinations, rules, regulations, permits, con- 
tracts, certificates, licenses, and privileges — 

(1) which have been issued, made, granted, or allowed to 
become effective by the President, any Federal department or 
agency or official thereof, or by a court of competent jurisdiction, 
in the performance of functions which are transferred under 
this Act, and 

(2) which are in effect at the time this Act takes effect, 
shall continue in effect according to their terms until modified, ter- 
minated, superseded, set aside, or revoked by the President, the 
Administrator, the Commission, or other authorized officials, a court 
of competent jurisdiction, or by operation of law. 

(c) The provisions of this Act shall not affect any proceeding 
pending, at the time this section takes effect, before the Atomic Energy 
Commission or any department or agency (or component thereof) 
functions of which are transferred by this Act ; but such proceedings, 
to the extent that they relate to functions so transferred, shall be 
continued. Orders shall be issued in such proceedings, appeals shall 
be taken therefrom, and payments shall be made pursuant to such 
orders, as if this Act had not been enacted; and orders issued in any 
such proceedings shall continue in effect until modified, terminated, 
superseded, or revoked by a duly authorized official, by a court of 
competent jurisdiction, or by operation of law. Nothing in this sub- 
section shall be deemed to prohibit the discontinuance or modification 
of any such proceeding under the same terms and conditions and to 
the same extent that such proceeding could have been discontinued if 
this Act had not been enacted. 

(d) Except as provided in subsection (f) — 

( 1) the provisions of this Act shall not affect suits commenced 
prior to the date this Act takes effect, and 

(2) in all such suits proceedings shall be had, appeals taken, 
and judgments rendered, in the same manner and effect as if 
this Act had not been enacted. 

(e) No suit, action, or other proceeding commenced by or against 
any officer in his official capacity as an officer of any department or 
agency, functions of which are transferred by this Act, shall abate 
by reason of the enactment of this Act. No cause of action by or 
against any department or agency, functions of which are transferred 
bv this Act, or by or against any officer thereof in his official capacity 
shall abate by reason of the enactment of this Act. Causes of actions, 
suits, actions, or other proceedings may be asserted by or against the 
United States or- such official as may be appropriate and. in any 
litigation pending when this section takes effect, the court may af 
any time, on its own motion or that of any party, enter any order 
which will give effect to the provisions of this sect ion. 

(f) If. before the date on which this Act takes effect, any depart- 
ment or agency, or officer thereof in his official capacity, is a party 
to a suit, and under this Act any function of such depart ment, agency. 

or officer is transferred to the Administrator or Commission, or any 

other official, then such suit shall be continued as if this Act had not 
been enacted, with the Administrator or Commission, or other official, 
:is the case may be, substituted. 

(g) Final orders and actions of any official or component in the 
performance of functions transferred by this Act shall be subject 
to judicial review to the same extent and in the same maimer as if 
such orders or actions had been made or taken by the officer, depart- 
ment, agency, or insJ rumentality in the performance of such fund ions 
immediately preceding the effective date of this Act. Any statutory 
requirements relating to notices, hearings, action upon the record, 
or administrative review that apply to any function transferred by 



41 



October 11, 1974 - 17 - Pub. Law 93-43: 



98 STAT. 1250 



this Act shall apply to the performance of those functions by the 
Administrator or Commission, or any officer or component. 

(h) With respect to any function transferred by this Act and 
performed after the effective date of this Act, reference in any other 
law to any department or agency, or any officer or office, the functions 
of which are so transferred, shall be deemed to refer to the Administra- 
tion, the Administrator or Commission, or other office or official in 
which this Act vests such functions. 

( i ) Nothing contained in this Act shall be construed to limit, curtail, 
abolish, or terminate any function of the President which he had 
immediately before the effective date of this Act ; or to limit, curtail, 
abolish, or terminate his authority to perform such function; or to 
limit, curtail, abolish, or terminate his authority to delegate, redelegate. 
or terminate any delegation of functions. 

(j) Any reference in this Act to any provision of law shall be 
deemed to include, as appropriate, references thereto as now or here- 
after amended or supplemented. 

(k) Except as may be otherwise expressly provided in this Act. 
all functions expressly conferred by this Act shall be in addition to 
and not in substitution for functions existing immediately before the 
effective date of this Act and transferred by this Act. 

TRANSFER OF PERSONNEL AND OTHER MATTERS 

Sec. 302. (a) Except as provided in the next sentence, the personnel 42 use 5872, 
employed in connection with, and the personnel positions, assets, 
liabilities, contracts, property, records, and unexpended balances of 
appropriations, authorizations, allocations, and other funds employed, 
held. used, arising from, available to or to be made available in con- 
nection with the functions and programs transferred by this Act. are. 
subject to section 202 of the Budget and Accounting Procedures Act 
of 1950 (31 U.S.C. 581c), correspondingly transferred for appro- 
priate allocation. Personnel positions expressly created by law, per- 
sonnel occupying those positions on the effective date of this Act. and 
personnel authorized to receive compensation at the rate prescribed 
for offices and positions at levels II. III. IV. or V of the Executive 
Schedule (5 T'.S.C. 5313-5316) on the effective date of this Act shall 
be subject to the provisions of subsection (c) of this section and 
section 301 of this Act. 

(b) Except as provided in subsection (c). transfer of nontemporary 
personnel pursuant to this Act shall not cause any such employee to be 
separated or reduced in grade or compensation for one year after 
such transfer. 

(c) Any person who. on the effective date of this Act. held a position 
compensated in accordance with the Executive Schedule prescribed 
in chapter 53 of title 5 of the United States Code, and who. without 
a break in service, is appointed in the Administration to a position 
having duties comparable to those performed immediately preceding 
his appointment shall continue to be compensated in his new position 
at not less than the rate provided for his previous position. 

INCIDENTAL DISPOSITIONS 

Sec. 303. The Director of the Office of Management and Budget is 4 2 use 5873. 
authorized to make such additional incidental dispositions of person- 
nel, personnel positions, assets, liabilities, contracts, property, records. 
and unexpended balances of appropriations, authorizations, alloca- 
tions, and other funds held, used, arising from, available to or to be 



42 



STAT. 1251 



Pub. Law 93-438 



October 11, 1974 



made available in connection with functions transferred by this Act, as 
he may deem necessary or appropriate to accomplish the intent and 
purpose of this Act. 

DEFINITIONS 

42 use 5874. Sec. 304. As used in this Act — 

(1) any reference to "function" or "functions" shall be deemed 
to include references to duty, obligation, power, authority, re- 
sponsibility, right, privilege, and activity, or the plural thereof, 
as the case may be; and 

(2) any reference to "perform" or "performance", when used 
ill relation to functions, shall be deemed to include the exercise of 
power, authority, rights, and privileges. 

AUTHORIZATION OF APPROPRIATIONS 

42 use 5875. Sec. 305. (a) Except as otherwise provided by law, appropriations 

made under this Act shall be subject to annual authorization. 

(b) Authorization of appropriations to the Commission shall re- 
flect the need for effective licensing and other regulation of the 
nuclear power industry in relation to the growth of such industry. 



42 USC 5976. 
42 USC 2206. 



Ante, pp. 1234, 
1242. 



Report to 
Congress. 



Reports to the 
President and 
Congress. 
42 USC 5877. 
Administration 
activities and 
progress. 



Feasibility of 

transferring 

military 

applioation 

functions. 



COMPTROLLER GENERAL AUDIT 

Sec. 306. (a) Section 166. "Comptroller General Audit" of the 
Atomic Energy Act of 1954, as amended, shall be deemed to be ap- 
plicable, respectively, to the nuclear and nonnuclear activities under 
title I and to the activities under title II. 

(b) The Comptroller General of the United States shall audit, 
review, and evaluate the implementation of the provisions of title 
II of this Act by the Nuclear Safety and Licensing Commission 
not later than sixty months after the effective date of this Act, the 
Comptroller General shall prepare and submit to the Congress a 
report on his audit, which shall contain, but not be limited to — 

(1) an evaluation of the effectiveness of the licensing and 
related regulatory activities of the Commission and the opera- 
tions of the Office of Nuclear Safety Research and the Bureau 
of Nuclear Materials Security ; 

(2) an evaluation of the effect of such Commission activities 
on the efficiency, effectiveness, and safety with which the activities 
licensed under the Atomic Energy Act of 1954, as amended, are 
carried out ; 

(3) recommendations concerning any legislation he deems 
necessary, and the reasons therefor, for improving the imple- 
mentation of title II. 

REPORTS 

Sec. 307. (a) The Administrator shall, as soon as practicable after 
the end of each fiscal year, make a report to the President for sub- 
mission to the Congress on the activities of the Administration din- 
ing the preceding fiscal year. Such report shall include a statement 
oi the snort-range and long-range goals, priorities, and plane <>f the 

Administration together with an assessment of the progress made 
toward the attuinment of those objectives and toward the more effec- 
tive and efficient management of the Administration and the coordi- 
nation of its functions. 

(b) During the first year of operation of the Administration, the 
Administrator, in collaboration with the Secretary of Defense, shall 
conduct a thorough review of the desirability and feasibility of trans- 



43 



October 11, 1974 



19 



Pub. Law 93-438 



88 STAT. 1252 



Commission 
activities and 
findings. 



ferring to the Department of Defense or other Federal agencies the 
functions of the Administrator respecting military application and 
restricted data, and within one year after the Administrator first 
takes office the Administrator shall make a report to the President, 
for submission to the Congress, setting forth his comprehensive analy- 
sis, the principal alternatives, and the specific recommendations of 
the Administrator and the Secretary of Defense. 

(c) The Commission shall, as soon as practicable after the end of 
each fiscal year, make a report to the President for submission to 
the Congress on the activities of the Commission during the preced- 
ing fiscal year. Such report shall include a clear statement of the 
short-range and long-range goals, priorities, and plans of the Com- 
mission as they relate to the benefits, costs, and risks of commercial 
nuclear power. Such report shall also include a clear description of 
the Commission's activities and findings in the following areas — 

(1) insuring the safe design of nuclear powerplants and other 
licensed facilities ; 

(2) investigating abnormal occurrences and defects in nuclear 
powerplants and other licensed facilities ; 

(3) safeguarding special nuclear materials at all stages of the 
nuclear fuel cycle; 

(4) investigating suspected, attempted, or actual thefts of spe- 
cial nuclear materials in the licensed sector and developing con- 
tingency plans for dealing with such incidents; 

(5) insuring the safe, permanent disposal of high-level radio- 
active wastes through the licensing of nuclear activities and 
facilities; 

(6) protecting the public against the hazards of low-level 
radioactive emissions from licensed nuclear activities and 
facilities. 

INFORMATION TO COMMITTEES 

Sec. 308. The Administrator shall keep the appropriate congres- 42 use 5878. 
sional committees fully and currently informed with respect to all of 
the Administration's activities. 

TRANSFER OF FUNDS 

Sec. 309. The Administrator, when authorized in an appropriation 42 use 5879. 
Act, may, in any fiscal year, transfer funds from one appropriation 
to another within the Administration; except, that no appropria- 
tion shall be either increased or decreased pursuant to this section by 
more than 5 per centum of the appropriation for such fiscal year. 



CONFORMING AMENDMENTS TO CERTAIN OTHER LAWS 

Sec. 310. Subchapter II (relating to Executive Schedule pay rates) 
of chapter 53 of title 5, United States Code, is amended as follows: 

(1) Section 5313 is amended by striking out a (8) Chairman, 
Atomic Energy Commission." and inserting in lieu thereof "(8) 
Chairman, Nuclear Regulatory Commission.", and by adding at 
the end thereof the following : 

"(22) Administrator of Energy Research and Development 
Administration.". 

(2) Section 5314 is amended by striking out "(42) Members, 
Atomic Energy Commission." and inserting in lieu thereof "(42) 
Members, Nuclear Regulatory Commission.", and by adding at 
the end thereof the following : 

"(60) Deputy Administrator, Energy Research and Develop- 
ment Administration.". 



44 



88 STAT. 1253 



Pub. Law 93-438 



20 - 



October 1 1. 1974 



42 USC 5801 
note. 



(3) Section 5315 is amended by striking out paragraph (50), 
and by adding at the end thereof the following: 

"(100) Assistant Administrators, Energy Research and Devel- 
opment Administration ((>). 

"(.101) Director of Nuclear Reactor Regulation, Nuclear 
Regulatory Commission. 

"(102) Director of Nuclear Material Safety and Safeguards, 
Nuclear Regulatory Commission. 

"(103) Director of Nuclear Regulatory Research, Nuclear 
Regulatory Commission. 

''(104) Executive Director for Operations, Nuclear Regulatory 
Commission." 

(4) Section 5;] Hi is amended bv striking out paragraphs (29), 
(62), (69), and (102), by striking out "(81) General Counsel of 
the Atomic Energy Commission.*' and inserting in lieu thereof 
"(81) General Counsel of the Nuclear Regulatory Commission.", 
and by adding at the end thereof the following: 

"(134) General Counsel, Energy Research and Development 
Administration. 

"(1:55) Additional officers, Energy Research and Development 
Administration (8). 

"(130) Additional officers, Nuclear Regulatory Commission 
(5).". 

SEPARABILITY 

Sec. 311. If any provision of this Act, or the application thereof 
to any person or circumstance, is held invalid, the remainder of this 
Act, and the application of such provision to other persons or 

circumstances, shall not be affected thereby. 



42 T JSC 5801 
note. 

Publioation in 
Federal 
Register. 



EFFECTIVE DATE AND INTERIM APPOINTMENTS 

Sec 312. (a) This Act shall take effect one hundred and twenty 
days after the date of its enactment, or on such earlier date as the 
President may prescribe and publish in the Federal Register: 
that any of the officers provided for in title I of this Act may be 
nominated and appointed, as provided by this Act, at any time after 
the date of enactment of this Act. Funds available to any department 
or agency for any official or component thereof), any functions of 
which are transferred to the Administrator and the Commission by 
this Act, may, with the approval of t he President, be used to pay the 
compensation and expenses of any officer appointed pursuant to this 
subsection until such time as funds for that purpose are otherwise 
available. 

(b) In the event that any officer required by this Act to be appointed 

b\ and with the advice and consent of the Senate shall not have entered 
upon office on the effective date of this Act, the President may designate 

any officer, whose appointment was required to be made by and with 
the advice and consent of the Senate and who was such an officer 

immediately prior to the effective date of tins Act, to act in such 
office until 'the office is tilled as provided m this Act. While so act- 
ing, Such persons 8hall receive compensation at the rates provided by 
this Act lor t he respective offices in which they act. 



45 



October 11, 1974 - 21 - Pub. Law 93-438 

38 STAT. 1254 

TITLE IV— SEX DISCRIMINATION 

SEX DISCRIMINATION PROHIBITED 

Sec. 401. No person shall on the ground of sex be excluded from 42 use 5891. 
participation in, be denied a license under, be denied the benefits of, 
or be subjected to discrimination under any program oi activity carried 
on or receiving Federal assistance under any title of this Act. This 
provision will be enforced through agency provisions and rules similar 
to those already established, with respect to racial and other dis- 
crimination, under title VI of the Civil Rights Act of 1964. However, 4 2 use 2000d, 
this remedy is not exclusive and will not prejudice or cut off any other 
legal remedies available to a discriminatee. 

Approved October 11, 1974. 



LEGISLATIVE HISTORY ; 

HOUSE REPORTS: No. 93-707 (Comm. on Government Operations) and 

No. 93-1445 (Comm. of Conference). 
SENATE REPORT No. 93-980 accompanying S. 2744 (Comm. on Government 

Operations) . 
CONGRESSIONAL RECORD: 

Vol. 119 (1973): Dec. 19, considered and passed House. 
Vol. 120 (1974): Aug. 15, considered and passed Senate, 
amended, in lieu of S. 2 744. 
Oct. 9, House agreed to conference report. 
Oct. 10, Senate agreed to conferenoe report. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS: 

Vol. 10, No. 41 (1974): Oct. 11, Presidential statement. 



Appendix II 

Federal Non-nuclear Energy Research and Development Act of 

1974 

(Public Law 93-577) 




49 



Public Law 93-577 

93rd Congress, S. 1283 

December 31, 1974 



Sin 3lct 



To establish a national program for research ami development in nonnuclear 
energy sources. 



Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled. 



SHORT TITLE 



Section 1. This Act may be cited as the "Federal Nonnuclear Energy 
Research and Development Act of 1974". 



Federal Non- 
nuclear Energy- 
Research and 
Development 
Act of 1974. 
42 USC 5901 



noxe. 
88 STAT. 



1878 



STATEMENT OF FINDINGS 

Sec. 2. The Congress hereby finds that — 

(a) The Nation is suffering from a shortage of environmentally 
acceptable forms of energy. 

(b) Compounding this energy shortage is our past and present fail- 
ure to formulate a comprehensive and aggressive research and devel- 
opment program designed to make available to American consumers 
our large domestic energy reserves including fossil fuels, nuclear fuels, 
geothermal resources, solar energy, and other forms of energy. This 
failure is partially because the unconventional energy technologies 
have not been judged to be economically competitive with traditional 
energy technologies. 

(c) The urgency of the Nation's energy challenge will require com- 
mitments similar to those undertaken in the Manhattan and Apollo 
projects; it will require that the Nation undertake a research, develop- 
ment, and demonstration program in nonnuclear energy technologies 
with a total Federal investment which may reach or exceed 
$20,000,000,000 over the next decade. 

(d) In undertaking such program, full advantage must be taken 
of the existing technical and managerial expertise in the various 
energy fields within Federal agencies and particularly in the private 
sector. 

(e) The Nation's future energy needs can be met if a national com- 
mitment is made now to dedicate the necessary financial resources, to 
enlist our scientific and technological capabilities, and to accord the 
proper priority to developing new nonnuclear energy options to serve 
national needs, conserve vital resources, and protect the environment. 



88 STAT. 1879 
42 USC 5901. 



STATEMENT OF POLICY 

Sec. 3. (a) It is the policy of the Congress to develop on an urgent 42 use 5902, 
basis the technological capabilities to support the broadest range of 
energy policy options through conservation and use of domestic 
resources by socially and environmentally acceptable means. 

(b) (1) The Congress declares the purpose of this Act to be to estab- 
lish and vigorously conduct a comprehensive, national program of 
basic and applied research and development, including but not limited 
to demonstrations of practical applications, of all potentially bene- 
ficial energy sources and utilization technologies, within the Energy 
Research and Development Administration. 

(2) In carrying out this program, the Administrator of the Energy 
Research and Development Administration (hereinafter in this Act 
referred to as the "Administrator") shall be governed by the terms of 
this Act and other applicable provisions of law with respect to all non- 
nuclear aspects of the research, development, and demonstration pro- 



50 



Pub. Law 93-577 - 2 - December 31, 1974 

gram; and the policies and provisions of the Atomic Energy Act of 

1954 (42 U.S.C. 2011 et seq. ), ami other provisions of law shall con- 
tinue to apply to the nuclear research, development, and demonstration 

program. 

(3) In implementing and conducting the research, development, and 
demonstration programs pursuant to this Act. the Administrator shall 
incorporate programs in specific nonnuclear technologies previously 
enacted into law. including those established by the Solar Heating and 

p. 1069. Cooling Act of 1974 (Public Law 93-409), the Geothermal Energy 
Research, Development, and Demonstration Act of 1974 (Public Law 

p. 1079. 93— ilO). and the Solar Energy Research. Development, and Demon- 
Ante, p. 1431. st rat ion Act of 1!>74 (Public Law 93-173). 

DUTIES AND AUTHORITIES OF THE ADMINISTRATOR 

5903, Sec. 4. The Administrator shall — 

(a) review the current status of nonnuclear energy resources 
and current nonnuclear energy research and development activi- 
ties, including research and development being conducted by Fed- 
eral and non-Federal entities; 

(b) formulate and cany out a comprehensive Federal nonnu- 
clear energy research, development, and demonstration program 
which will expeditiously advance the policies established by this 
Act and other relevant legislation establishing programs in 
specific energy technologies; 

(c) utilize the funds authorized pursuant to this Act to advance 
energy research and development by initiating and maintaining, 
through fund transfers, grants, or contracts, energy research. 
development and demonstration programs or activities utilizing 
the facilities, capabilities, expertise, and experience of Federal 
agencies, national laboratories, universities, nonprofit organiza- 
tions, industrial entities, and other- non-Federal entities which are 
appropriate to each type of research, development, and demon- 
stration activity ; 

(d) establish procedures for periodic consultation with repre- 
sentatives of science, industry, environmental organizations, con- 
sumers, and other groups who have special expertise in the areas 
of energy research, development, and technology; and 

(e) initiate programs to design, construct, ami operate energy 
facilities of sufficient size to demonstrate the technical and eco- 
nomic feasibility of utilizing various form> of nonnuclear energy. 

GOVERNING PRINCIPLES 

5904. 5. ia) The Congress authorizes and directs that the compre- 
hensive program in research, development, and demonstration 

required by this A -t shall be designed and executed according to the 

following principles: 

i nergy conservation shall be a primary consideration in 
the design and implementation of the Federal nonnucka] energy 

program. For the purposes of this Act, energy conservation 

means both improvement in efficiency of energy production and 

use. ami reduct ion in energy waste. 

(2) The environmental ami social consequences of a proposed 
program shall be analyzed ami considered in evaluating its 

potent ial. 

\n\ program for the development of a technology which 

may require significant consumptive use of water after the tech- 
nology has reached the stage of commercial application shall 



51 



December 31, 1974 



Pub. Law 93-577 



include thorough consideration of the impacts of such technology 
and use on water resources pursuant to the provisions of section 13. 

(4) Heavy emphasis shall be given to those technologies which 
utilize renewable or essentially inexhaustible energy sources. 

(5) The potential for production of net energy by the proposed 
technology at the stage of commercial application shall be ana- 
lyzed and considered in evaluating proposals. 

(b) The Congress further directs that the execution of the com- 
prehensive research, development, and demonstration program shall 
conform to the following principles : 

(1) Research and development of nonnuclear energy sources 
shall be pursued in such a way as to facilitate the commercial 
availability of adequate supplies of energy to all regions of the 
United States. 

(2) In determining the appropriateness of Federal involvement 
in any particular research and development undertaking, the 
Administrator shall give consideration to the extent to which the 
proposed undertaking satisfies criteria including, but not limited 
to, the following : 

(A) The urgency of public need for the potential results 
of the research, development, or demonstration effort is high, 
and it is unlikely that similar results would be achieved in a 
timely manner in the absence of Federal assistance. 

(B) The potential opportunities for non-Federal interests 
to recapture the investment in the undertaking through the 
normal commercial utilization of proprietary knowledge 
appear inadequate to encourage timely results. 

(C) The extent of the problems treated and the objectives 
sought by the undertaking are national or widespread in 
their significance. 

(D) There are limited opportunities to induce non-Federal 
support of the undertaking through regulatory actions, end 
use controls, tax and price incentives, public education, or 
other alternatives to direct Federal financial assistance. 

(E) The degree of risk of loss of investment inherent in the 
research is high, and the availability or risk capital to the 
non-Federal entities which might otherwise engage in 
the field of the research is inadequate for the timely develop- 
ment of the technology. 

(F) The magnitude of the investment appeal's to exceed 
the financial capabilities of potential non-Federal partici- 
pants in the research to support effective efforts. 



STAT. 1881 



COMPREHENSIVE PLANNING AND PROGRAMMING 

Skc. 6. (a) Pursuant to the authority and directions of this Act and Flan, trans- 
the Energy Reorganization Act of 15)74 (Public Law 9&-438), the mittai to 
Administrator shall transmit to the Congress, on or before June 30, Congress. 
1975, a comprehensive plan for energy research, development, and f 2 + USC 59 ?233 
demonstration. This plan shall be appropriately revised annually as n e * p * 
provided in section 15(a). Such plan shall be designed to achieve — 

(1) solutions to immediate and short-term (to the early 1980's) 
energy supply system and associated environmental problems; 

(2) solutions to middle-term (the early 1980's to 2000) energy 
supply system and associated environmental problems; and 

(3) solutions to long-term (beyond 2000) energy supply system 
and associated environmental problems. 

(b) (1) Based on the comprehensive energy research, development. :• rogram, trans- 
anal demonstration plan developed under subsection (a), the Adminis- mittal to 

Congress. 



52 



Pub. Law 93-577 - 4 - December 31, 1974 



88 STAT. 1882 



trator shall develop and transmit to the Congress, on or before June 30, 
197."). a comprehensive nonnuclear energy research, development, and 
demonstration program to implement the nonnuclear research, devel- 
opment, and demonstration aspects of the comprehensive plan. 

(2) This program shall be designed to achieve solutions to the 
energy supply and associated environmental problems in the imme- 
diate and snort-term (to the early 1980's). middle-term (the early 
L980's to 20(H)). and long-term (beyond 2000) time intervals. In 
formulating the nonnuclear aspects of this program, the Administrator 
shall evaluate the economic, environmental, and technological merits 
of each aspect of the program. 

(3) The Administrator shall assign program elements and activities 
in specific nonnuclear energy technologies to the short-term, middle- 
term, and long-term time intervals, and shall present full and complete 
justification for these assignments and the degree of emphasis for 
each. These program elements and activities shall include, but not be 
limited to, research, development, and demonstrations designed — 

(A) to advance energy conservation technologies, including 
but not limited to — 

(i) productive use of waste, including garbage, sewage. 
agricultural wastes, and industrial waste heat ; 

(ii) reuse and recycling of materials and consumer 
products; 

(iii) improvements in automobile design for increased effi- 
ciency and lowered emissions, including investigation of the 
full range of alternatives to the internal combustion engine 
and systems of efficient public transportation; and 

(iv) advanced urban and architectural design to promote 
efficient energy use in the residential and commercial sec- 
tors, improvements in home design and insulation technol- 
ogies, small thermal storage units and increased efficiency 
in electrical appliances and lighting fixtures; 
( B) to accelerate the commercial demons! ration of technologies 
for producing low-sulfur fuels suitable for boiler use; 

((' ) to demonstrate improved methods for the generation, stor- 
age, and transmission of electrical energy through (i) advances 
in gas turbine technologies, combined power cycles, the use of low 
British thermal unit gas and, if practicable, magnetohydrody- 
namics; (ii) storage systems to allow more efficient load follow- 
ing, including the use of inert lal energy storage systems; ;md 
(in) improvement in cryogenic transmission methods; 

(I)) to accelerate the commercial demonstration of technologies 
for producing substitutes for natural L r as. including coal gasifica- 
tion: Provided^ That the Administrator shall invite and con- 
sider proposals from potential participants based upon Federal 
assistance and participation in the form of a joint Federal indus- 
try corporation, and recommendations pursuant to this clause 
shall lie accompanied by a report on the viability of using this 
form of Federal assistance or part icipat ion ; 

(K) to accelerate the commercial demonstration of technologies 

for producing Byncrude and liquid petroleum products from coal : 

Provtdi '/. Tli. 'it t he A din mist tutor shall m\ ite and consider pro- 
posals from potential participants based upon Federal assistance 
and participation through guaranteed price- or purchase of the 
products, and recommendations pursuant to this clause shall be 

ompanied by a report on the viability of using this form of 
Federal Assistance or participation; 

(F) in accordance with the program authorized by the Geo- 
thermal Energy Research, Development, and Demonstration Act 



53 



December 31, 1974 



- 5 - 



Pub. Law 93-577 



88 STAT. 1833 



of 1974 (Public Law 93-410), to accelerate the commercial dem- Ante, p. 1079, 
onstration of geothermal energy technologies ; 

(G) to demonstrate the production of syncrude from oil shale 
by all promising technologies including in situ technologies; 

(H) to demonstrate new and improved methods for the extrac- 
tion of petroleum resources, including secondary and tertiary 
recovery of crude oil ; 

(I) to demonstrate the economics and commercial viability of 
solar energy for residential and commercial energy supply appli- 
cations in accordance with the program authorized by the Solar 
Heating and Cooling Act of 1974 (Public Law 93^09)"; Ante, p. 1059. 

(J) to accelerate the commercial demonstration of environ- 
mental control systems for energy technologies developed pur- 
suant to this Act ; 

(K) to investigate the technical and economic feasibility of 
tidal power for supplying electrical energy ; 

(L) to commercially demonstrate advanced solar energy tech- 
nologies in accordance with the Solar Research, Development, and 
Demonstration Act of 1974 (Public Law 93— 473) : Ante, p. 1431. 

(M) to determine the economics and commercial viability of 
the production of synthetic fuels such as hydrogen and methanol ; 

(N) to commercially demonstrate the use of fuel cells for 
central station electric power generation; 

(O) to determine the economics and commercial viability of 
in situ coal gasification ; 

(P) to improve techniques for the management of existing 
energy systems by means of quality control ; application of sys- 
tems analysis, communications, and computer techniques; and 
public information with the objective of improving the reliability 
and efficiency of energy supplies and encourage the conservation 
of energy resources; and 

(Q) to improve methods for the prevention and cleanup of 
marine oil spills. 



FORMS OF FEDERAL ASSISTANCE 

Sec. 7. (a) In carrying out the objectives of this Act, the Ad- 42 use 5906. 
ministrator may utilize various forms of Federal assistance and par- 
ticipation which may include but are not limited to — 

(1) joint Federal-industry experimental, demonstration, or 
commercial corporations consistent with the provisions of sub- 
section (b) of this section ; 

(2) contractual arrangements with non-Federal participants 
including corporations, consortia, universities, governmental 
entities and nonprofit institutions; 

(3) contracts for the construction and operation of federally 
owned facilities; 

(4) Federal purchases or guaranteed price of the products 
of demonstration plants or activities consistent with the provi- 
sions of subsection (c) of the section ; 

(5) Federal loans to non-Federal entities conducting demon- 
strations of new technologies; and 

(6) incentives, including financial awards, to individual inven- 
tors, such incentives to be designed to encourage the participation 
of a large number of such inventors. 

(b) Joint Federal-industry corporations proposed for congres- Joint Federal- 

sional authorization pursuant to this Act shall be subject to the pro- industry, cor- 

visions of section 9 of this Act and shall conform to the following porations, 

guidelines except as otherwise authorized by Congress : ' su ide lines . 



54 



Pub. Law 93-577 - 6 - December 31, 1974 

-... 1B64 

(1) Each such corporation may design, construct, operate, and 
maintain one or more experimental, demonstration, or commercial- 
size facilities, or other operations which will ascertain the techni- 
cal, environmental, and economic feasibility of a particular energy 
technology. In carrying out this function, the corporation shall be 
empowered, either directly or by contract, to utilize commercially 
available technologies, perform tests, or design, construct, and 
operate pilot plants, as may be necessary for the design of the 
full-scale facility. 

(2) Each corporation shall have — 

(A) a Board of nine directors consisting of individuals 
who are citizens of the United States, of whom one shall be 
elected annually by the Board to serve as Chairman. The 
Hoard shall be empowered to adopt and amend bylaws. Five 
members of the Board shall be appointed by the President of 
the United States, by and with the advice and consent of the 
Senate, and four members of the Board shall be appointed by 
the President on the basis of recommendations received by 
him from any non-Federal entity or entities entering into 
contractual arrangements to participate in the corporation; 

(B) a President and such other officers and employees as 
may be named and appointed by the Board (with the rates of 
compensation of all officers and employees being fixed by the 
Board) ; and 

(C) the usual powers conferred upon corporations by the 
laws of the District of Columbia. 

(.')) An appropriate time interval, not to exceed Yl years, shall 
be established for the term of Federal participation in the corpo- 
ration, at the expiration of which the Board of Directors shall 
take such action as may be necessary to dissolve the corporation 
or otherwise terminate Federal participation and financial inter- 
ests. In carrying out such dissolution, the Board of Directors shall 
dispose of ail physical facilities of the corporation in such manner 
and subject to such terms and conditions as the Board determines 
are in the public interest and consistent with existing law; and a 
share of the appraised value of the corporate assets proportional 
to the Federal participation in the corporation, including the 
proceeds from the disposition of such facilities, on the date of its 
dissolution, after satisfaction of all its legal obligations, shall be 
made available to the I 'nited States and deposited in the Treasury 
of the United States as miscellaneous receipts. All patent lights 
of the corporation shall, on such date of dissolution, be vested in 
the Administrator: Provided^ That Federal participation may 
be terminated prior to the time established in the authorizing Act 
upon recommendal ion of the Board of Directors. 

(1) Any commercially valuable product produced by demon- 
stration facilities shall be disposed of in such manner and under 
such terms and conditions as the corporation shall prescribe. All 
revenues received by the corporation from the sale of such products 

shall be available to the corporation for use by it in de flaying 
expenses inclined in < onnection with carrying out its function- to 
which this Act applies. 

The estimated Federal share of the construction, operation, 
and maintenance cost over the life of each corporation shall be 
determined in order to facilitate a single congressional authoriza- 
tion of the full amount at the time of establishment of the 

corporation. 

(('») The Federal share of the cost of each such corporation shall 
i > fleet ( A ) the technical and economic risk of the venture, (B) the 



00 



December 31, 1974 



- 7 



Pub. Law 93-577 



88 STAT. 1885 



probability of any financial return to the non-Federal participants 
arising from the venture, (C) the financial capability of the poten- 
tial non-Federal participants, and (D) such other factors as the 
Administrator may set forth in proposing the corporation : Pro- 
vided, That in no instance shall the Federal share exceed 90 per 
centum of the cost. 

(7) (A) Prior to the establishment of any joint Federal-industry 
corporation pursuant to this Act, the Administrator shall submit 
to the Speaker of the House of Representatives and the President 
pro tempore of the Senate, and to the appropriate committees of 
the House of Representatives and the Senate a report setting forth 
in detail the consistency of the establishment of the corporation 
with the principles and directives set forth in section 5 and this 
section, and the proposed purpose and planned activities of the 
corporation. 

(B) No such corporation shall be established unless previously 
authorized by specific legislation enacted by the Congress, 
(c) Competitive systems of price supports proposed for congres- 
sional authorization pursuant to this Act shall conform to the follow- 
ing guidelines: 

(1) The Administrator shall determine the types and capacities 
of the desired full-scale, commercial-size facility or other 
operation which would demonstrate the technical, environmental, 
and economic feasibility of a particular nonnuclear energy 
technology. 

(2) The Administrator may award planning grants for the 
purpose of financing a study of the full cycle economic and envi- 
ronmental costs associated with the demonstration facility selected 
pursuant to paragraph (1) of this subsection. Such planning 
grants may be awarded to Federal and non-Federal entities 
including, but not limited to, industrial entities, universities, and 
nonprofit organizations. Such planning grants may also be used 
by the grantee to prepare a detailed and comprehensive bid to con- 
struct the demonstration facility. 

(3) Following the completion of the studies pursuant to the 
planning grants awarded under paragraph (2) of this subsection 
regarding each such potential price supported demonstration 
facility for which the Administrator intends to request congres- 
sional authorization, he shall invite bids from all interested parties 
to determine the minimum amount of Federal price support 
needed to construct the demonstration facility. The Adminis- 
trator may designate one or more competing entities, each to con- 
struct one commercial demonstration facility. Such designation 
shall be made on the basis of those entities, (A) commitment to 
construct the demonstration facility at the minimum level of 
Federal price supports, (B) detailed plan of environmental pro- 
tection, and (C) proposed design and operation of the demon- 
stration facility. 

(4) The construction plans and actual construction of the 
demonstration facility, together with all related facilities, shall be 
monitored by the Environmental Protection Agency. Tf additional 
environmental requirements are imposed by the ' Administrator 
after the designation of the successful bidders and if such addi- 
tional environmental requirements result in additional costs, the 
Administrator is authorized to renegotiate the support price to 
cover such additional costs. 

(5) The estimated amount of the Federal price support for a 
demonstration facility's product over the life of such facility shall 



Report to 
Speaker of the 
House, Presi- 
dent pro tem- 
pore, and 
congressional 
committees. 



Price support 

systems, 

guidelines. 



56 



Pub. Law 93-577 - 8 - December 31, 1974 



. 1665 



be determined by the Administrator to facilitate a single con- 
gressional authorization of the full amount of such support at the 
time of the designation of the successful bidders. 

(6) No price support program shall be implemented unless pre- 
viously authorized by specific legislation enacted by the Congress, 
(d) Nothing in this section shall preclude Federal participation in, 
and support for, joint university-industry nonnuelear energy research 
efforts. 

DBXON&TKATIOXS 

42 USC 5907. Sec. 8. (a) The Administrator is authorized to — 

(1) identify opportunities to accelerate the commercial appli- 
cations of new energy technologies, and provide Federal assist- 
ance for or participation in demonstration projects (including 
pilot plants demonstrating technological advances and field dem- 
onstrations of new methods and procedures, and demonstrations 
of prototype commercial applications for the exploration, devel- 
opment, production, transportation, conversion, and utilization of 
energy resources) ; and 

(2) enter into cooperative agreements with non-Federal enti- 
ties to demonstrate the technical feasibility and economic poten- 
tial of energy technologies on a prototype or full-scale basis. 

(b) In reviewing potential projects, the Administrator shall con- 
sider criteria including but not limited to — 

(1) the anticipated, research, development, and application 
objectives to be achieved by the activities or facilities proposed; 

{2) the economic, environmental, and societal significance 
which a successful demonstration may have for the national fuels 
and energy system ; 

(3) the relationship of the proposal to the criteria of priority 
set forth in sec. ion 5(b) (2) ; 

(4) the availability of non-Federal participants to construct 
and operate the facilities or perform the activities associated with 
the proposal and to contribute to the financing of the proposal; 

(5) the total estimated cost including the Federal investment 
and the probable time schedule; 

(6) the proposed participants and the proposed financial con- 
tributions of the Federal Government and of the non-Federal 
participants; and 

(7) the proposed cooperative arrangement, agreements among 
the participants, and form of management of the activities, 

(c) I 1) A financial award under this section may be made only to 
the extent of the Federal share of the estimated total design and con- 
struction costs, plus operation and maintenance costs. 

(2) For the purposes of this Act the non Federal share may be in 
any form, including, but no; limited to, lands or interest- (herein 
needed for the project or personal property or Services, the value of 
which shall be determined by the Administrator. 
Regulations. (d)(1) The Administrator shall, within six months of enactment 

of this Act.- promulgate regulation- establishing procedures for 

submission of proposals to the Energy Research and Development 
Administration for the purposes of this Act. Such regulations shall 
establish a procedure for select ion of proposals which — 

( A ) provides that project- will be carried out under such condi- 
tions SM varying circumstances as will assist in solving energy 
extraction, transportation, conversion, conservation, and end use 
problems of various area- and regions, under rep re s en tative geo 

logical, geographic, and environmental conditions; and 

(It) provides time schedules for submission of, and action on, 

proposal requests fbr the purposes of implementing the goals and 

objectives oft his Act. 



57 



December 31, 1974 



- 9 



Pub. Law 93-577 



STAT. 1887 



(2) Such regulations also shall specify the types and form of the 
information, data, and support documentation that are to be contained 
in proposals for each form of Federal assistance or participation set 
forth in subsection 7(a) : Provided, That such proposals to the extent 
possible shall include, but not be limited to — 

(A) specification of the technology; 

(B) description of prior pilot plant operating experience with 
the technology ; 

(C) preliminary design of the demonstration plant; 

(D) time tables containing proposed construction and operation 
plans; 

(E) budget-type estimates of construction and operating costs; 

(F) description and proof of title to land for proposed site, 
natural resources, electricity and water supply and logistical 
information related to access to raw materials to construct and 
operate the plant and to dispose of salable products produced 
from the plant; 

(G) analysis of the environmental impact of the proposed plant 
and plans for disposal of wastes resulting from the operation of the 
plant ; 

(H) plans for commercial use of the technology if the demon- 
stration is successful; 

(I) plans for continued use of the plant if the demonstration 
is successful; and 

(J) plans for dismantling of the plant if the demonstration is 
unsuccessful or otherwise abandoned. 

(3) The Administrator shall from time to time review and, as 
appropriate, modify and repromulgate regulations issued pursuant to 
this section. 

(e) If the estimate of the Federal investment with respect to con- 
struction costs of any demonstration project proposed to be established 
under this section exceeds $50,000,000, no amount may be appropriated 
for such project except as specifically authorized by legislation here- 
after enacted by the Congress. 

(f) If the total estimated amount of the Federal contribution to 
the construction cost of a demonstration project does not exceed 
$50,000,000, the Administrator is authorized to proceed with the nego- 
tiation of agreements and implementation of the proposal subject to 
the availability of funds under the authorization of appropriations 
pursuant to section lf>: Provided, That if such Federal contribution to 
the construction cost is estimated to exceed $25,000,000 the Adminis- 
trator shall provide a full and comprehensive report on the proposed 
demonstration project to the appropriate committees of the Congress 
and no funds may be expended for any agreement under the authority 
granted by this section prior to the expiration of sixty calendar days 
(not including any day on which either House of Congress is not in 
session because of an adjournment of more than three calendar days 
to a day certain) from the date on which the Administrator's report on 
the proposed project is received by the Congress. Such reports shall 
contain an analysis of the extent to which the proposed demonstration 
satisfies the criteria specified in subsection (b) of this section. 



Report to 

congressional 

committees. 



TATENT POLICY 



Sec. 9. (a) Whenever any invention is made or conceived in the 42 use 5908, 
course of or under any contract of the Administration, other than 
nuclear energy research, development, and demonstration pursuant to 
the Atomic Energy Act of 1954 (42 U.S.C. 2011 et seq.) and the 
Administrator determines that — 

(1) the person who made the invention was employed or 
assigned to perform research, development, or demonstration 



58 



Pub. Law 93-577 



- 10 



December 31, 1974 



88 STAT. 1888 



Report, 



Waiver of 
rights. 



work and the invention is related to the work lie was employed or 
assigned to perform, or that it was within the scope of his employ- 
ment duties, whether or not it was made during working hours, 
or with a contribution by the Government of the use of Govern- 
ment facilities, equipment, materials, allocated funds, information 
proprietary to the Government, or services of Government employ- 
ees during working hours ; or 

(2) the person who made the invention was not employed or 

assigned to perform research, development, or demonstration 

work, but thi' invention is nevertheless related to the contract or 

to the work or duties he was employed or assigned to perform, and 

was made during working hours, or with a contribution from the 

Government of the sort referred to in clause (1). 

title to such invention shall vest in the United States, and if patents 

on such invention are issued they shall be issued to the United States, 

unless in particular circumstances the Administrator waives all or any 

part of the rights of the United States to such invention in conformity 

with the provisions of this section. 

(b) Each contract entered into by the Administration with any per- 
son shall contain effective provisions under which such person shall 
furnish promptly to the Administration a written report containing 
full and complete technical information concerning any invention, 
discovery, improvement, or innovation which may be made in the 
course of or under such contract . 

(c) Under such regulations in conformity with the provisions of 
this section as the Administrator shall prescribe, the Administrator 
may waive all or any part of the rights of the United States under this 
section with respect to any invention or class of inventions made or 
which may be made by any person or class of persons in the course 
of or under any contract of the Administration if he determines that 
the interests of the United States and the general public will best be 
served by such waiver. The Administration shall maintain a publicly 
available, periodically updated record of waiver determinations. In 
making such determinations, the Administrator shall have the follow- 
ing objectives : 

(1) Making the benefits of the energy research, development, 
and demonstration program widely available to the public in the 
shortest practicable time. 

(•2) Promoting the commercial utilization of such inventions. 
I Encouraging participation by private persons in the 
Administration's energy research, development, and demonstra- 
tion program. 

I I) Fostering competition and preventing undue market con- 
centration or tin' creation or maintenance of other situations 
inconsistent with the ant it rust laws. 
idi [n determining whether a waiver to the cont ractor at the time 
of contracting will best serve the interests of the United States and 
the general public, the Administrator shall specifically include as 

considerations 

( 1 ) the extent to which the participation of the contractor will 

expedite I he attainment of the purposes of the program : 

(2) the extent to which a waiver of all or any part of such 
rights in any or all fields of technology is needed to secure the 

participation of the particular contractor; 

<;5) the extent to which the contractor's commercial position 

may expedite utilization of the research, development, and dem- 
ons! rat ion program results; 

( 1 ) the extent to which the (lovernment has contributed to the 
field of technology to be funded under the cont ract ; 

(. r >) the purpose and nature of the contract, including the 
intended use of the results developed thereunder: 



59 

December 31, 1974 - 11 - Pub. Law 93-577 



STAT. 1889 



(6) the extent to which the contractor has made or will make 
substantial investment of financial resources or technology devel- 
oped at the contractor's private expense which will directly bene- 
fit the work to be performed under the contract ; 

(7) the extent to which the field of technology to be funded 
under the contract has been developed at the contractor's private 
expense ; 

(8) the extent to which the Government intends to further 
develop to the point of commercial utilization the results of the 
contract effort ; 

(9) the extent to which the contract objectives are concerned 
with the public health, public safety, or public welfare; 

(10) the likely effect of the waiver on competition and market 
concentration; and 

(11 ) in the case of a nonprofit educational institution, the extent 
to which such institution has a technology transfer capability and 
program, approved by the Administrator as being consistent with 
the applicable policies of this section. 

(e) In determining whether a waiver to the contractor or inventor 
of rights to an identified invention will best serve the interests of the 
United States and the general public, the Administrator shall specif- 
ically include as considerations paragraphs (4) through (11) of sub- 
section (d) as applied to the invention and — 

(1) the extent to which such waiver is a reasonable and neces- 
sary incentive to call forth private risk capital for the develop- 
ment and commercialization of the invention; and 

(2) the extent to which the plans, intentions, and ability of the 
contractor or inventor will obtain expeditious commercialization 
of such invention. 

(f) Whenever title to an invention is vested in the United States, 
there may be reserved to the contractor or inventor — 

(1) a revocable or irrevocable nonexclusive, paid-up license for 
the practice of the invention throughout the world; and 

(2) the rights to such invention in any foreign country where 
the" United States has elected not to secure patent rights and the 
contractor elects to do so, subject to the rights set forth in para- 
graphs (2), (3), (6), and (7) of subsection (h) : Provided, That 
when specifically requested by the Administration and three years 
after issuance of such a patent, the contractor shall submit the 
report specified in subsection (h)(1) of this section. 

(g) (1) Subject to paragraph (2) of this subsection, the Adminis- Licenses, 
trator shall determine and promulgate regulations specifying the regulations, 
terms and conditions upon which licenses may be granted in any 

invention to which title is vested in the United States. 

(2) Pursuant to paragraph (1) of this subsection, the Adminis- Hearing. 
trator may grant exclusive or partially exclusive licenses in any inven- 
tion only if, after notice and opportunity for hearing, it is determined 
that— 

(A) the interests of the United States and the general public 
will best be served by the proposed license, in view of the appli- 
cant's intentions, plans, and ability to bring the invention to the 
point of practical or commercial applications; 

(B) the desired practical or commercial applications have not 
been achieved, or are not likely expeditiously to be achieved, 
under any nonexclusive license which has been granted, or which 
may be granted, on the invention; 

(C) exclusive or partially exclusive licensing is a reasonable 
and necessary incentive to call forth risk capital and expenses 



88 STAT. 1890 



60 

Pub. Law 93-577 - 12 - December 31, 1974 



to bring the invention to the point of practical or commercial 
applications; and 

(D) the proposed terms anil scope of exclusivity are not sub- 
stantially greater than necessary to provide the incentive for 
bringing the invention to the point of practical or commercial 
applications and to permit the licensee to recoup its costs and a 
reasonable profit thereon: 
Provided^ That, the Administrator shall not grant such exclusive or 
partially exclusive license if he determines that the grant of such 
license will tend substantially to lessen competition or result in undue 
concentration in any section of the country in any line of commerce 
to which the technology to be licensed relates. The Administration shall 
maintain a publicly available, periodically updated record of deter- 
minations to grant such licenses. 
Waiver, (h) Each waiver of rigbts or giant of an exclusive or partially 

terns and exclusive license shall contain such terms and conditions as the Admin- 

conditions, istrator may determine to be appropriate for the protection of the 

interests of the United States and the general public, including provi- 
sions for the following: 

(1) Periodic written reports at reasonable intervals, and when 
specifically requested by the Administration, on the commercial 
use that is being made or is intended to be made of the invention. 

(2) At least an irrevocable, nonexclusive, paid-up license to 
make, use, and sell the invention throughout the world by or on 
behalf of the United States (including any Government agency) 
and States and domestic municipal governments, unless the 
Administrator determines that it would not be in the public 
interest to acquire the license for the States ami domestic munic- 
ipal governments. 

(3) The right in the United States to sublicense any foreign 
government pursuant to any existing or future treaty or agree- 
ment if the Administrator determines it would be in the national 
interest to acquire this right. 

(4) The reservation in the United States of the rights to the 
invention in any country in which the contractor dors not tile an 
application for patent within such time as the Administration 
shall determine. 

(5) The right in the Administrator to require the giant ing of 
a nonexclusive, exclusive, or partially exclusive license to a 
responsible applicant or applicants, upon terms reasonable under 
the circumstances. (A) to the extent that the invention is required 
for public use by governmental regulations, or (H) as may be 

necessary to fulfill healt h. safety, or energy needs, or (C) for such 
other purposes as may be stipulated in the applicable agreement. 

(6) The right in the Administrator to terminate such waiver or 
license in whole or in part unless the recipient of the waiver or 
license demonstrates to the satisfaction of the Administrator that 
he has taken ell'ect ive steps, or within a reasonable time thereafter 
is expected to take such steps, necessary to accomplish substantial 
utilization of the invention. 

(7) The right in the Administrator, commencing three years 

after the grant of a license and four years after a waiver is effec- 
tive as to an invention, to require the granting of a nonexclusive 1 

or partial!} exclusive license to a responsible applicant or 

applicants, upon terms reasonable under the circumstances, and in 

appropriate circumstances to terminate the waiver <>r license in 

whole or in part, following a hearing upon notice thereof to the 
public, upon a petition by an interested person justifying such 

hearing 



61 



December 31, 1974 



13 - 



Pub. Law 93-577 



88 STAT. 1891 



review of such 



(A) if the Administrator determines, upon review oi sucn 
material as he deems relevant, and after the recipient of the 
waiver or license, or other interested person, has had the 
opportunity to provide such relevant and material informa- 
tion as the Administrator may require, that such waiver or 
license has tended substantially to lessen competition or to 
result in undue concentration in any section of the country 
in any line of commerce to which the technology relates ; or 

(B) unless the recipient of the waiver or license demon- 
strates to the satisfaction of the Administrator at such hear- 
ing that he has taken effective steps, or within a reasonable 
time thereafter is expected to take such steps, necessary to 
accomplish substantial utilization of the invention. 

(i) The Administrator shall provide an annual periodic notice to 
the public in the Federal Register, or other appropriate publication, 
of the right to have a hearing as provided by subsection (h) (7) of this 
section, and of the availability of the records of determinations pro- 
vided in this section. 

(j) The Administrator shall, in granting waivers or licenses, con- 
sider the small business status of the applicant. 

(k) The Administrator is authorized to take all suitable and neces- 
sary steps to protect any invention or discovery to which the United 
States holds title, and to require that contractors or persons who 
acquire rights to inventions under this section protect such inventions. 

(1) The Administration shall be considered a defense agency of the 
United States for the purpose of chapter 17 of title 35 of the United 
States Code. 

(m) As used in this section — 

(1) the term "person" means any individual, partnership, cor 
poration, association, institution, or other entity; 

(2) the term "contract" means any contract, grant, agreement, 
understanding, or other arrangement, which includes research, 
development, or demonstration work, and includes any assign- 
ment, substitution of parties, or subcontract executed or entered 
into thereunder; 

(3) the term "made", when used in relation to any invention, 
means the conception or first actual reduction to practice of such 
invention; 

(4) the term "invention" means inventions or discoveries, 
whether patented or unpatented; and 

(5) the term "contractor" means any person having a contract 
with or on behalf of the Administration. 

(n) Within twelve months after the date of the enactment of this 
Act, the Administrator with the participation of the Attorney Gen- 
eral, the Secretary of Commerce, and other officials as the President 
may designate, shall submit to the President and the appropriate con- 
gressional committees a report concerning the applicability of exist ing 
patent policies affecting the programs under this Act, along with his 
recommendations for amendments or additions to the statutory patent 
policy, including his recommendations on mandatory licensing, which 
he deems advisable for carrying out the purposes of this Act. 



Publication in 
Federal Regis- 
ter. 



35 USC 181. 
Definitions. 



Report, sub- 
mittal to 
President 
and con- 
gressional 
committees. 



RELATIONSHIP TO ANTITRUST LAWS 



SBC. K>. (a) Nothing in this Act shall be deemed to convey to any 
individual, corporation, or other business organization immunity from 
civil or criminal liability, or to create defenses to actions, under the 
antitrust laws. 

(b) As used in this section, the term "antitrust law" means — 



42 USC 5909. 



'Antitrust law. 



62 



88 STAT. 1892 



15 USC 58, 



Pub. Law 93-577 



- 14 - 



December 31, 1974 



(1) the Act entitled "An Act to protect trade and commerce 
against unlawful restraints and monopolies*', approved July 2, 
1890 (15 U.S.C. 1 et seq. ) , as amended ; 

(2) the Act entitled "An Act to supplement existing laws 
against unlawful restraints and monopolies, and for other pur- 
poses", approved October 15, 1914 (15 U.S.C. 12 et seq.) as 
amended ; 

(3) the Federal Trade Commission Act (15 U.S.C. 41 et seq.), 
as amended ; 

(4) sections 73 and 74 of the Act entitled "An Act to reduce 
taxation, to provide revenue for the Government, and for other 
purposes", approved August 27. 1894 (15 U.S.C. 8 and 9), as 
amended; and 

(5) the Act of June 19, 1936, chapter 592 (15 U.S.C. 13, 13a, 
13b, and 21a). 



42 USC 5910. 



Hearings, 



Transcript, 
availability, 
Report to 
President, 
Administra- 
tor, and 
Congress. 



42 USC 5911, 



roj ostd 
rule or 

rjr<lcr t 
trans- 
mittal to 



ENVIRONMENTAL EVALUATION 

Sec. 11. (a) The Council on Environmental Quality is authorized 
and directed to carry out a continuing analysis of the effect of appli- 
cation of nonnuclear energy technologies to evaluate — 

(1) the adequacy of attention to energy conservation methods; 
and 

(2) the adequacy of attention to environmental protection and 
the environmental consequences of the application of energy 
technologies. 

(b) The Council on Environmental Quality, in carrying out the 
provisions of this section, may employ consultants or contractors and 
may by fund transfer employ the services of other Federal agencies 
for the conduct of studies and investigations. 

(c) The Council on Environmental Quality shall hold annual public 
hearings on the conduct of energy research and development and the 
probable environmental consequences of trends in the development 
and application of energy technologies. The transcript of the hearings 
shall be published and made available to the public. 

(d) The Council on Environmental Quality shall make such reports 
to the President, the Administrator, and the Congress as it deems 
appropriate concerning the conduct of energy research and develop- 
ment. The President as a part of the annual Environmental Policy 
Report required by section 201 of the National Environmental Policy 
Act of L969 (42 U.S.C. 4341) shall set forth the findings of the Council 
on Environmental Quality concerning the probable environmental 
consequences of trends in the development and application of energy 

technologies. 

ACQUISITION OF ESSENTIAL MATERIALS 

Sec. 12. (a) The President may, by rule or older, require the allo- 
cation of, Or the performance under contracts or Orders (other than 
contracts of employ men t ) relating to, supplies of materials and equip- 
ment if he finds that 

(1) such Supplies are scarce, critical, and essential to r:\y\y out 
the purposes 01 1 his Act ; and 

(2) Buch supplies cannot reasonably be obtained without exer- 
cising the authority granted by this section. 

(b) The President shall transmit any rule or order proposed under 
subsection (a) of t his sect ion ( hearing an identification number) to 
each House of ( 'ongress on the dale on which it is proposed. If luch 
proposed rule or order is transmitted to the Congress such propo .d 



63 



December 31, 1974 



- 15 



Pub. Law 93-577 



rule or order shall take effect at the end of the first period of thirty 
calendar days of continuous session of Congress after the date on which 
such proposed rule or order is transmitted to it unless, between the 
date of transmittal and the end of the thirty day period, either House 
passes a resolution stating in substance that such House does not favor 
such a proposed rule or order. 



STAT. 1893 



WATER RESOURCE EVALUATION 

Sec. 13. (a) At the request of the Administrator, the Water 42 use 5912 
Resources Council shall undertake assessments of water resource 
requirements and water supply availability for any nonnuclear energy 
technology and any probable combinations of technologies which are 
the subject of Federal research and development efforts authorized by 
this Act, and the commercial development of which could have signifi- 
cant impacts on water resources. In the preparation of its assessment, 
the Council shall— 

(1) utilize to the maximum extent practicable data on water 
supply and demand available in the files of member agencies of 
the Council ; 

(2) collect and compile any additional data it deems necessary 
for complete and accurate assessments ; 

(3) give full consideration to the constraints upon availability 
imposed by treaty, compact, court decree, State water laws, and 
water rights granted pursuant to State and Federal law ; 

(4) assess the effects of development of such technology on 
water quality ; 

(5) include estimates of cost associated with production and 
management of the required water supply, and the cost of disposal 
of waste water generated by the proposed facility or process; 

(6) assess the environmental, social, and economic impact of 
any change in use of currently utilized water resource that may 
be required by the proposed facility or process; and 

(7) consult with the Council on Environmental Quality. 

(b) For any proposed demonstration project which may involve 
a significant impact on water resources, the Administrator shall, as 
a precondition of Federal assistance to that project, prepare or have 
prepared an assessment of the availability of adequate water resources. 
A report on the assessment shall be published in the Federal Register 
for public review thirty days prior to the expenditure of Federal 
funds on the demonstration. 

(c) For any proposed Federal assistance for commercial applica- 
tion of energy technologies pursuant to this Act, the Water Resource 
Council shall, as a precondition of such Federal assistance, provide 
to the Administrator an assessment of the availability of adequate 
water resources for such commercial application and an evaluation 
of the environmental, social, and economic impacts of the dedication of 
water to such uses. 

(d) Reports of assessments and evaluations prepared by the Coun- 
cil pursuant to subsections (a) and (c) shall be published in the Fed- 
eral Register and at least ninety days shall be provided for public Register 
review and comment. Comments received shall accompany the reports 
when they are submitted to the Administrator and shall be available 
to the public. 

(e) The Council shall include a broad survey and analysis of 
regional and national water resource availability for energy devel- 
opment in the biennial assessment required by section 102(a) of the 
Water Resources Planning Act (42 U.S.C. 1962a-l(a)). 



Publication 
in Federal 

Register. 



Publication 
in Federal 



8B STAT. 1994 



64 

Pub. Law 93-577 - 16 - December 31, 1974 



EXERGY-RELATKD INVENTIONS 

42 use 5913. Sec. 14. The National Bureau of Standards shall give particular 

attention to the evaluation of all promising energy-related inventions, 
particularly those submitted by individual inventors and small com- 
panies for the purpose of obtaining direct grants from the Adminis- 

Regula-tions. trator. The National Bureau of Standards is authorized to promulgate 
regulations in the furtherance of this section. 

REPORTS TO CONGRESS 

42 use 5914. Sec. 15. (a) Concurrent with the submission of the President's 

annual budget to the Congress, the Administrator shall submit to 
the Congress each year — 

(1) a report detailing the activities carried out pursuant to 
this Act during the preceding fiscal year; 

(2) a detailed description of the comprehensive plan for nuclear 
and nonnuclear energy research, development, ami demonstration 
then in effect under section 6(a) ; and 

(3) a detailed description of the comprehensive nonnuclear 
research, development, and demonstration program then in effect 
under section 6(b) including its program elements and activities. 

setting forth such modifications in the comprehensive plan referred 
to in clause (2) and the comprehensive program referred to in clause 
(3) as may be necessary to revise appropriately such plan and pro- 
gram in the light of the activities referred to in clause (1) and any 
changes in circumstance's which may have occurred since the last 
previous report under this subsection. 

(b) The description of the comprehensive nonnuclear research, 
development, and demonstration program submitted under subsec- 
tion (a)(2) shall include a statement setting forth — 

(1) the anticipated research, development, and application 
objectives to be achieved by the proposed program; 

(2) the economic, environmental, and societal significance which 
the proposed program may have ; 

(3) the total estimated cost of individual program items; 

(4) the estimated relative financial contributions of the Federal 
Government and non-Federal participants in the research and 
development program; 

(5) the relationship of the, proposed program to any Federal 
national energy or fuel policies; and 

( 6 ) the relationship of any short-term undertakings and expend 
itures to Long-range goals. 

(c) The reports required by subsections (a) and (b) of this sec- 
tion will satisfy the reporting requirements oi section 307(a) of the 

Ante, p. 1251. Energy Reorganization Act of 1974 (Public Law 93 t38) insofar as is 
concerned activities, goals, priorities, and plans of the Energy Research 

and Development Administration pertaining to nonnuclear energy. 
APPROPRIA1 ION VI l HORIZA1 ION 
5915. SEC. L6. (a) There may he appropriated to the Administrator to 

carry out the purposes of this Act such sums as may he authorized in 

annual aut hori/.at ion Acts. 

(b) Of the amounts appropriated pursuant t<> Biibsection (a) of 
this section • 

(1) $500,000 annually shall he made available by fund transfer 
to the Council on Environmental Quality for the purposes author- 
ized by sect ion 1 1 ; and 



65 



December 31, 1974 - 17 - Pub. Law 93-577 

_______ 88 STAT. 1895 



(2) not to exceed $1,000,000 annually shall be made available by 
fund transfer to the Water Resources Council for the purposes 
authorized by section 13. 
(c) There also may be appropriated to the Administrator by sepa- 
rate Acts such amounts as are required for demonstration projects 
for which the total Federal contribution to construction costs exceeds 
$50,000,000. 

Approved December 31, 1974. 



LEGISLATIVE HISTORY : 

HOUSE REPORTS: '"o. 93-1157 accompanying H.R. 13565 (Comm. on Interior 
and Insular Affairs) and No, 93-1563 (Comm. of 
Conference). 
SENATE REPORT No. 93-589 (Comm. on Interior and Insular Affairs). 
CONGRESSIONAL RECORD: 

Vol. 119 (1973): Dec. 5-7, considered and passed Senate. 
Vol. 120 (1974): Aug. 22, Sept. 11, considered and passed House, 

amended, in lieu of 
H. R. 13565. 
Dec. 16, House agreed to conference report. 
Dec. 17, Senate agreed to conference report. 



Appendix III 
Summary of ERDA's Long Kange Plan 



69 




ERDA-48 

VOL. 1 OF 2 



A National Plan 

For Energy Research, 

Development & Demonstration: 



Creating Energy Choices For 
The Future 



Volume 1: 
The Plan 



70 



SUMMARY 



A serious and continuing energy problem exists 
in this country. 

Imports, in the form of petroleum, petroleum 
products, and natural gas account for "J" percent 
of the total domestic energy consiunption, at an 
annual cost of over $2"i billion in 1974. 

This heavy reliance on imported energy has 
serious national security implication-. Depend- 
ence on imports make- the United States vulner- 
able to undesirable external influences on U.S. 
foreign and domestic policy. Foreign powers 
can threaten life styles and economic stability 
by curtailing the supply of petroleum or effecting 
arbitrary and sudden price changes. The quad- 
rupling of the world price of petroleum in the 
I>;i-t two year- ha- disrupted the U.S. economy 
and the economie- of all other importing nations. 

This Plan recognizes five national policy goals 
as a focus for energy policy: 

• To maintain the security and policy inde- 
pendence of the Nation. 

• To maintain a strong and healthy economy. 
providing adequate employment oppor- 
tunities and allowing fulfillment of econ- 
omic aspirations (especially in the less 
affluent parts of the population). 

• To provide for future need- -o that life 
Styles remain a matter of choice and are 
not limited by the unavailability of energy. 

• To contribute to world stability through 
cooperative international efforts in the 
energy sphere. 

• To protect and improve the Nation's en- 
vironmental quality by assuring that the 
preservation of land, water, and air re- 
Bourcee is given high priority. 

The national energy problem is best understood 
as one of limited choices today. 

• The U.S. energy system currently relies 
most on lie least plentiful domestic energy 
resources, and least on the most abundant 

trees. 

• Over 7"< percent of the Nation's energy 
consumption ifl based on petroleum and 



natural gas. Dome-tic supplies of these 
commodities are dwindling. 

• Coal, the most abundant dome-tic fossil 
fuel, provide- les> than -J<> percent of cur- 
rent energy needs. 

• Uranium, the domestic energy source with 
the greatest energy potential, provides 
atxnit -J percent of the Nation's energy. 

• Solar energy, available to all. hut diffuse. 
provides a negligibly -mall percentage of 
current needs. 

To overcome this problem and to achieve our 
National policy goals, the Nation must have the 
flexibility of a broad range of energy choices. 

It i> not possible to predict what our Nation's 
interests and it- people's desired life style will 1h> 
at the end of this century. Whatever those inter- 
ests and de-ire- are. however, energy should serve 
them. The present situation in which national 
policy and social choice are constrained by over 
reliance on one form of energy cannot 1k> allowed 
to recur. 

For these reasons, today's challenge is to ore- 
ate a wide range of energy options for the future. 
The National Plan for energy K.DXd) i< designed 
precisely to create those options for future gen- 
eration-. 

The Plan ha- Keen developed within the con- 
text of the President's overall energy policy and 
programs. 

The Plan delineates the innovation- m tech- 
nologies required to overcome energy problems. 
If price -tincture-, regulations, or incentives 
change, many of the required technologies may 

he developed in the private sector in response to 

market demands and without Federally assisted 

K.lKvD. 

To generate the necessary options, the Plan is 
designed to facilitate the changeover from depend- 
ence on a narrow base of diminishing domestic 
resources to reliance on a broader range of less 
limited or unlimited alternatives. 

The first technologic*] need i- to extend the 

life of our od and gas resources. The reappraisal 

of the Nation'- oil and gas resource- just re 



S-l 



71 



leased by the U.S. Geological Survey, and in- 
dependently supported by a current study of the 
National Academy of Sciences, demonstrates the 
need for this step (see Figures 1 and 2). 

The implication of the new estimates are that 
current rates of oil and gas production by con- 
ventional methods will be difficult to maintain. 



even with additional Outer Continental Shelf and 
Alaskan production. Without enhanced recovery, 
the estimates indicate that production of domestic 
oil will begin to drop rapidly in the mid 1980's. 
as will the production of domestic natural gas. It 
is unlikely that major new energy - sources could be 
ready by that time. 



IN THIS FIGURE, DOMESTIC OIL INCLUDES CRUDE AND NATURAL GAS LIQUIDS 



5.0 



4.0- 



3.0- 



2.0- 



O 1.0 



1920 



■ACTUAL 




CUMULATIVE PRODUCTION 

THROUGH 1974 = 

123 BILLION BARRELS 



1930 



1940 



— I — 
1950 



— I — 
1960 



— I — 
1970 



PROJECTED- 



WITH 
*""^ ENHANCED 
> v RECOVERY 




ALASKAN 
NORTH 
SLOPE OIL 

REMAINING RECOVEF 

AFTER 1974 = 

142 BILLION BARRELS 

+40 BILLION BARRELS WITH 

ENHANCED RECOVERY 

182 BILLION BARRELS, TOTAL 



— I — 
1990 



2000 2010 2020 



CALENDAR YEAR 



Figure 1. Projected Domestic Oil Production 




1940 



2000 2010 2020 
Figure 2. Projected Domestic Natural Gas Production 



1960 1970 1980 
CALENDAR YEAR 



S-2 



72 



Enhanced recovery, which requires sonic tech- 
E il development, will buy roughly 10 years 
of time. These 1" war- arv crucially important 
ro the country because they double the tunc avail- 
able for the development <>f new energy sonrces. 

A Beeond basic step is to tap the domestic 
energy resources available to n>. Figure :'> repre- 
sents estimates of recoverable domestic resources 
monly considered fuels. In tliis figure, the 
amount of energy is shown graphically by area, 
with the shaded portion- indicating additional 
resources that ma} become available if the tech- 
nology can be developed for recovery. 

Finally, two additional major resources exist. 
both of which can represent essentially inexhaus- 
tible sources of energy if the technology to use 
them can be perfected. These are solar energy 
and fusion energy. In both cases the potential is 
substantial, although Significant problems remain 

to be solved in their development. These source-. 

together with nuclear breeding, represent the 
major candidates for meeting energy need- of the 
future. Even if these technologies should prove 
I'd in satisfying the technical, economic. 
institutional and environmental requirements for 
implementation, their major energy supply con- 
tributions will occur in the twentv-first century. 



There are other potential sources of energy 
production, many of them limited in one way or 
another. A full li>t of sources is shown in Table 
1. 



• Coal 


• Oil 


• Crops 


• Oil Shale and Tar Sands 


• Fertile Nuclear 


• Sunlight 


• Fissile Nuclear 


• Tides 


• Geothermal 


• Waste Heat 


• Hydroelectric 


• Waste Materials 


• Natural Gas 


• Water (fusion and hydrogen) 


• Ocean Heat 


• Wind power 


Table 1. 


Fuels and Energy Sources 



This transition to new energy sources must be 
made more swiftly than ever before. 

The historical perspective of Figure 4 >hows 
that in the past it has taken some sixty years 
from the point at which a transition to a new 
energy resource was first discernible until that 
resource, in turn, reached it- peak use and began 



AVAILABLE ENERGY IN QUADS (10 1 
SHOWN GRAPHICALLY BY AREA. 



BTU) 



TOTAL U.S. ENERGY CONSUMPTION IN 1974 
WAS 73 QUADS 



PORTION ORE 

RECOVERABLE YIELDING 

WITH ENHANCED 10 TO 25 

RECOVERY GAL/TON 





GAS OIL SHALE 


COAL 


1.800 


URANIUM 


1 .030 5,800 


12.000+ 


LIGHT 


1 30.000 


PETROLEUM 




WATER 




1.100 




REACTORS 





Figure 3. Available Energy from Recoverable Domestic Energy Resources 



- 



73 



SOURCE: HISTORICAL STATISTICS OF THE 

UNITED STATES BUREAU OF THE CENSUS; 
U. S. BUREAU OF MINES, 1974 



other high technology areas to undergird 
and lead to continuing innovation in the 
energy technology area. 



90 


* PETROLEUM & 




\ F(JEL NATURAL GAS 


(/> 80 

ID 

CJ 


" V^WOOD \ 


rr 70 

D 

o 

w 60 
£ 50 

LLI 

S 40 


\ / V oal / 
/ \ / \ 


O 30 


- / \ / \ 


< 

2 20 


-/ \ / V 




' \y 


10 


*■ \C nuclear 


n 


— < — -^ V- 

1 1 1 1 1 1 i 1 1 1 1 i+-~ 



1860 1880 1900 1920 1940 1960 1980 
CALENDAR YEAR 

Figure 4. U.S. Energy Consumption Patterns 

to decline relative to other sources. Domestic sup- 
plies of oil and gas appear to have reached that 
sixty-year peak. Their relative shares in the U.S. 
energy market are expected to decrease with time. 
It is essential, therefore, to plan now for the 
transition from oil and gas to new sources to 
supply the next energy cycle. The Nation cannot 
afford to wait another 60 years to complete the 
next transition. Only an aggressive program of 
technological development can expedite this 
process. It is urgent to begin now. 

To accomplish this transition a framework of 
national energy technology goals has been estab- 
lished. 

These goals, shown in Table 2, emphasize not 
only the development of technologies related di- 
rectly to the supply of energy but also develop- 
ment of supporting technologies that focus on: 

• The crucial importance of reducing energy 
waste and increasing the efficiency of en- 
ergy use in all sectors of the economy 
through application of existing and new 
technologies. 

• The major role of technology in protecting 
and enhancing the environment, a concept 
which must be. fully integrated into all as- 
pects of energy production and use. 

•The. necessary supporting structure of basic 
research ami technical "spin-offs' 1 from 



Expand the domestic supply of economically re- 
coverable energy producing raw materials 

Increase the utilization of essentially inexhausti- 
ble domestic energy resources 



resources into more 



Efficiently transform fuel 
desirable forms 

Increase the efficiency and reliability of the proc- 
esses used in the energy conversion and delivery 
systems 

Transform consumption patterns to improve en- 
ergy utilization 

Increase end-use efficiency 

Protect and enhance the general health, safety, 
welfare and environment related to energy 

Perform basic and supporting research and tech- 
nical services related to energy 



Table 2. National Energy R.D&D Goals 



All the national energy technology goals must be 
pursued together. Concentration on only one or a 
few technological avenues is not likely to solve the 
energy problem. 

A number of strategies have been advanced to 
solve the energy problem. The first is to place 
primary national emphasis on reduction of energy 
waste and inefficiencies to ease supply problems. 
The second is to put primary emphasis on the 
use of the vast energy residing in the Nation's 
coal and oil shale resources to produce synthetic 
fuels that will substitute directly for diminishing 
supplies of oil and gas. The third is to empha- 
size the alteration of consumption patterns, 
shifting from reliance on petroleum and gas to 
reliance cm electricity, which can be provided 
from all the domestically abundant energy 
sources. 

To derive a fuller perspective, these strategies 
need to be contrasted with views of the future in 
which (a) no significant new initiatives are under- 
taken, (b) a key technology (such as nuclear 
power) is eliminated from consideration, and 
(c) some combination of all of the primary re- 
sponses is assumed to have a high — even un- 
realistically high— degree of success. ERDA has 
examined all six strategies called scenarios in this 
report : 

Scenario No New Initiatives 

Scenario I Improved Efficiencies in End- 

I'se 

Scenario II Synthetics from Coal and Shale 



74 



Scenario III Intensive Electrification 
Scenario IV Limited Nuclear Power 
- .:irio V Combination of All Technolo- 
gies 

Analysis of these scenarios focuses on drawing 

forth insights on the nature of: 

• The energy system itself, viewed as ;i sys- 
tem. 

• The role of technologies within the system. 

• How the above characteristics change with 
time. 

It -hould be emphasized that the scenario- arc 
not forecasts or predictions. They are illustra- 
tions of possible strategic: — "paper and pencil ex- 
periment-." 

The same demand for energy services was used 
a.- a basis for all scenarios. The demand assumes 
continuation of historical trends by use sector 
modified to reflect recent price increases. The ap- 
propriate technology mix of each scenario, to- 
gether with the oil and gas production estimates 
shown in Figures 1 and -1. leads to estimates of 
the amounts of imported fuel needed to satisfy 
demand. Result- are shown in Figure 5. 

The import levels for the primary Scenarios 
I. II and III are unacceptable high in the year 
2000, representing an increase over today's levels 
and in some cases an accelerating increase. The 1 * 
lev. 1- reflect, of course, the result of emphasizing 



only a single set of technological approaches to 
• leal with the energy problem. The analysis sug- 
gests that : 

• All scenarios, except V. are unacceptable 
individually: they show increasing im- 
ports. That is. only the successful develop- 
ment and implementation of a large num- 
ber of technologies in a combination of 
approaches can make importing fuel a 
matter of choice. 

• Curtailment of any major existing option 
(such as nuclear power) places heavy de- 
mands on all the remaining options and 
precludes an acceptable solution (low level 
of imports or no imports i. 

The target area for R.D&I) contribution is 
represented by the shaded area in Figure 5, 
bounded on the top by the curves for the primary 
Scenarios I through III and bounded below by 
the extensive technological success assumed in 
Scenario V. 

The actual future levels of imports will depend 
not only on the technological result- within the 
above spectrum but also upon: 

• The actual amount of oil and gas found 
and produced in the United State-. 

• The actual life style (demand for services) 
eithei chosen for the future or forced upon 
the public by a continuing energy supply 
problem. 









oo50 

Q 

< 

D 
O 






?40 






CO 

< 

o 
Q 30 

z 
< 






_) 
6 20 




r ****m# 




Up 

o 




CO 

£ 10 
o 

s 






t- 




^"""■s^ 


z 




" v \ 


-10 


1 1 


1 1 1 1 



1975 



1980 1985 1990 
CALENDAR YEAR 



1995 2000 



SCENARIOS 

No New Initiatives 
Improved Efficiencies in End Use 
Synthetics from Coal and Shale 
Intensive Electrification 
Limited Nuclear Power 
Combination of All Technologies 



Figure 5. Imports of Oil and Gas 



75 



Near-Term Major Energy Systems 

New Sources of Liquids and Gases for the Mid-Term 
"Inexhaustible" Sources for the Long-Term 

Near-Term Efficiency (Conservation) Technologies 

Under Used Mid-Term Technologies 
Technologies Supporting Intensive Electrification 

Technologies Being Explored for the Long-Term 



Coal— Direct Utilization in Utility/Industry 
Nuclear— Converter Reactors 
Oil and Gas— Enhanced Recovery 

Gaseous & Liquid Fuels from Coal 
Oil Shale 

Breeder Reactors 

Fusion 

Solar Electric 

Conservation in Buildings & Consumer Produ( 
Industrial Energy Efficiency 
Transportation Efficiency 
Waste Materials to Energy 

Geothermal 

Solar Heating and Cooling 

Waste Heat Utilization 

Electric Conversion Efficiency 

Electric Power Transmission and Distribution 

Electric Transport 

Energy Storage 

Fuels from Biomass 
Hydrogen in Energy Systems 



Highest 
Priority 
Supply 



Highest 
Priority 
Demand 



Other 
, Important 
Technologies 



Table 3. National Ranking of R.D&D Technologies 



Based upon an analysis of scenarios, the status 
of the candidate technologies, and the extent of 
the resources they would use, a national ranking 
of R.D&D technologies has been developed to 
identify priorities for emphasis in the Plan. 

The ranked list is presented in Table 3. 

For the near-term (now to 1985) and beyond, 
the priorities are : 

• To preserve and expand major domestic 
energy systems: coal, light water reactors 
(the highest nuclear priority), and gas 
and oil both from new sources and from 
enhanced recovery techniques. 

• To increase the efficiency of energy used 
in all sectors of the economy and to extract 
more, usable energy from waste materials. 

For the mid-term (1985-2000) and beyond, 
priorities are : 

• To accelerate the development of new 
processes for production of synthetic fuels 
from coal and for extraction of oil from 
shale. 

• To increase the use of under-used fuel 
forms, such as geothermal energy, solar 
energy for heating and cooling, and extrac- 
tion of more usable energy from waste 
heat. Xone of these technologies has a ma- 
jor long-term impact, but each can be 
quite useful in relieving mid-term short- 
ages. 

For the long-term (past 2000). priorities are: 

• To pursue vigorously those candidate 
technologies which will permit the use of 
essentiallv inexhaustible resources: 



— Nuclear breeders. 
— Fusion. 

— Solar electric energy from a variety of 
technological options, including wind 
power, thermal and photovoltaic ap- 
proaches, and use of ocean thermal 
gradients. 

Xone of the above three technologies 
is assured of large scale application. All 
have unique unresolved questions in one 
or more areas: technical, economic, en- 
vironmental or social. The benefits to be 
gained in achieving success in one or 
more of these approaches require that 
vigorous development efforts proceed 
now on all three. 
• To provide the technologies to use the new 
sources of energy which may be distributed 
as electricity, hydrogen or other forms 
throughout all sectors of the economy. 

(A- an example, long term efforts are 
needed to develop a full range of electric 
vehicle capabilities.) 
Substantial effort is required now if the sig- 
nificant energy contributions defined above are 
to become available in the mid- and long-term as 
needed. 

It shonild be noted that outlays for Federally 
supported programs may not necessarily con- 
form to the national ranking developed here. 
This is because many of the technologies will be 
developed in the private sector and there are dif- 
ferences in the scope of the program effort and 
the extent of development required. 



S-6 



76 



The above priority ranking and accompanying 
Plan itself reflect ERDA's determination that five 
major changes are needed in the nature and scope 
of the Nation's energy R.D&D program. 

These changes, winch must be made rapidly 
and simultaneously and many of which arc al- 
ready reflected in the President's program for 
LI M'.. are: 

• Emphasis on overcoming th< technical 
problems inhibiting expansion of high 

■■ ms — notably coal 
and light ii-nti r i, ,i< tore. 

Achieving an expansion requires the 
solution of several critical problems in- 
volving operational reliability and ac- 
ceptable environmental impact. 

• An immediat* focus on conservatu 

These efforts implement first genera- 
tion existing technology, extend this 
technology with improved capabilities. 
demonstrate its viability and widely 
disseminate the results. 
The primary targets are automotive 
transportation, buildings and indus- 
trial procec 

• Acceleration of commercial capability to 
extract gaseous and liquid fuels from coal 
and shalt . 

A two-pronged effort is needed to 

achieve this objective. Existing tech- 
nologies must be implemented as soon 

as possible to gain needed experience 

with large scale synthetic fuel produc- 
tion. A Synthetic Fuel- Commerciali- 
zation program is now being developed 
to implement the President's synthetic 
fuels goal announced in the 1975 State 
of the Union Message. Also required 
i- aggressive pursuit of parallel ef- 
forts, now underway, to develop a 
more efficient generation of plant- with 
lower product costs and less environ- 
mental impact. 

• Inclusion of tlu solar electrit approach 
among tht "inexhaustible" resourct tech- 
nology i to b* givt n high priority. 

The technologies for producing essen 
tially inexhaustible supplies of electric 
power from solar energy will !*• given 
priority comparable to fusion and the 
breeder reactor. 

• increased attention to under used new 
technologies that can bt rapidly developed. 

The technologies that are close to im- 
plementation and promise a significant 
impart for the mid-term and beyond 



are principally solar heating and cool- 
ing and the use of geothermal power. 
To attain the national energy goals, it is neces- 
sary not only to demonstrate the technical feasi- 
bility of new energy system.- but to ensure that the 
environmental, health, and safety aspects of these 
systems are socially acceptable. This will require 
that environmental effects assessment l>e initiated 
early in the R,D&D process and that environmen- 
tal and safety controls be developed as an integral 
part of energy system design. Ensuring social 
acceptability demand- vigorous program over- 
view and assessment, open reporting of findings 
and progress, and frequent public interaction on 
the part of the RJD&D establishment 

To assist in the development of the energy 
supply technologies assigned priority in the Plan, 
supporting technologies are also required. 

The Plan considers both broad supporting tech- 
nologies (Table 4) and other supporting tech 
nologies (Table ."> ) which are specifically as 
ted with the individual fuel cycles for each of the 
primary technologies. These specific supporting 
technologies acquire their importance from the 
priority and status of the primary technologies 
to winch they are attached. 



• Basic Research 

• Biomedical and Environmental Research 

• Systems Studies 

• Information Dissemination 

• Manpower Development 

• Safety 

Table 4. Broad Supporting Technologies 



• Exploration and Resource Assessment 

• Mining and Beneficiation 

• Environmental Control Technology 

• Nuclear Safeguards 

• Support to the Nuclear Fuel Cycle 

• Uranium Enrichment 

• Fossil Fuel Transportation 

• Waste Management 

Table 5. Specific Supporting Technologies 



[Uustrative priority activities for specific sup- 
porting technologies are as follows: 

• Mote rapid and complete assessment of 
domestic uranium resources. 

• Expansion of coal availability and use 



s : 



UNIVERSITY OF FLORIDA 



77 




12b2 DM5b7 7T1D 



through improved mining and environmen- 
tal control technologies. 

• Increased effort toward understanding bio- 
medical and environmental consequences of 
waste products generated and dispersed by 
fossil energy technologies. 

• Emphasis on resolution of nuclear safe- 
guards issue.-, to strengthen the viability of 
the nuclear option. 

• Increased effort on light water reactor fuel 
cycle technology where information and ex- 
perience are required to resolve issues of 
chemical processing, plutonium recycle and 
waste management. 

• Early expansion of U.S. nuclear fuel en- 
richment capacity. 

• Vigorous dissemination to insl it utional and 
public audiences of information on consep* 
vat ion technologies. 

Implementation of the National Plan for energy 
R.D&D will require coordination and cooperation 
among all sectors of the society. 

The task of implementing the Plan is national 
in scope, involving the Federal Government 
(other agencies as well as ERDA), state and local 
governments, and the private sector. Necessary 
working relationships must be developed in detail. 
The guiding principle is that the Federal Govern- 
ment will provide overall leader-hip and will 
undertake only those efforts that industry cannot 
initiate. A^- a given technology approaches com- 
mercialization, the role of the private sector will 
lie paramount. In this role, the private sector 
will : 

• Interact strongly with the Federal Gov- 
ernment in developing the economic, tech- 
nical, safety, and environmental assets 
of the National Plan for energy H.DAI) 

• Participate in joint programs activities to 
ensure the significance of Federal activity 
and to minimize Federal cost 

• In partnership with the Federal Govern- 
ment, define long-range needs, enhance 
market potential and transfer information 
from the public to private sector 

• Play the major role (financially and tech- 
nically) in large demonstration and near- 
commercial projects 

• Commercialize the technology. 

State and local governments and regional 
groups reflect regional and local perspectives on 
the energy situation. Their participation and in- 
volvement in the overall process is extremely im- 
portant. These governmental units will be 
involved in questions of environmental control: 
in resource extraction, plant siting, and the. 
revision of construction and Iniildinj; codes to 



accommodate innovative technologies; and in in- 
dustrial regulation. It is ERDA's policy to seek 
the views and involvement of the states and locali- 
ties to ensure that their interests and concerns are 
reflected in the formulation of national energy 
R.D&I) policy. 

The National Plan represents the first step in a 
continuing planning effort. 

The initial planning effort reported here has 
emphasized a diagnosis of the problem; establish- 
ment of major national goal>: definition of key 
priorities: and direction of resources to high 
leverage areas. 

This planning, however, must evolve through 
continuing effort. There is need for (1) a deeper 
analysis of key uncertainties to confirm or modify 
priorities; (2) a more integrated treatment of the 
range of programs to allow for more extensive 
cross-comparisons among technologies: and (3) 
a more precise definition of programs to maxi- 
mize assurance that each program responds to its 
greatest opportunities and produces result- direct- 
ly in support of national goals. Such a planning 
progression continually modifies programs and 
alters direction to take advantage of research 
efforts, analysis, experience and shifting circum- 
stances — all of which are functions of time. In- 
deed, the legislation establishing ERDA recog- 
nizes these factors l>y requiring periodic updates 
of the Plan — the first being required in January 
of 1!)~(). Public comment on this initial plan, 
together with additional analysis, will be reflected 
in subsequent planning products. 

National security, the Nation's economy, and 
the ability to determine life style are all in peril 
today. Substantial assistance from new technol- 
ogy is critically needed, but significant results 
are not expected before 10S5. Major efforts must 
be pursued now because of the time required to 
research, develop, and implement new energy 
technologies. 

To ensure maximum flexibility for future en- 
ergy systems and to allow for some failures in 
the development process, the Nation's energy 
Plan must provide multiple options which, taken 
all together, could exceed perceived needs. 

Accordingly, today's national energy research, 
development, and demonstration programs must: 

• Shorten the time for transition to new fuel 
forms based on abundant domestic fuel 
resources. 

• Avoid overemphasis on single approaches 
which tend to foreclose future options. 

• Open up new choices for the future. 

The task of creating choices for the future must 
be urgently addressed now -and with full public 
participation. 



S-8 



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